Target: ₹495
CMP: ₹417.65
Founded in 1957 in Chennai as a standalone eye hospital, has evolved into the largest integrated pan-India eye care network, managed by the third-generation doctor-promoter family.
The company operates 272 facilities (253 in India, 19 in Africa) with an estimated about 25 per cent market share among organised eye care chains in India.
DAHL offers a full spectrum of ophthalmic services, with surgeries contributing about 67 per cent of revenue, followed by diagnostics and consultations (around 12 per cent) & optical and pharma products (around 21 per cent).
DAHL delivered a 32 per cent revenue CAGR in FY22-26E, driven by aggressive network expansion (about 105 surgical center additions since April 2021 including 50 acquired facilities).
We believe DAHL’s leadership position, scalable hub-and-spoke model, and premiumization-led growth underpin its structurally strong operating model. Supported by network expansion and consolidation in a fragmented market, DAHL is well-positioned to sustain industry-leading growth and improve return ratios.
Factoring in equity dilution (5 per cent) from issuance of about 1.5 crore shares in DAHL for minority holders in AEHL (currently around 73 per cent owned subsidiary), we estimate EPS CAGR of 42 per cent in FY26-28E and RoCE improvement to 13 per cent in FY28E vs. 10 per cent in FY26E. We value the stock at 25x our FY28 pre-Ind AS EBITDA of ₹650 crore to arrive at a target price of ₹495;