Target: ₹477
CMP: ₹338.15
Medi Assist Healthcare Services is India’s largest health insurance third-party administrator (TPA), operating the claims and benefits infrastructure that sits between insurers, hospitals and policyholders. It adjudicates claims, manages a 20,000-hospital cashless network, runs fraud detection and administers government health schemes – earning a fee as a percentage of premium administered or fixed amount per member/family, without underwriting risk or touching claim funds. Its premium under management has compounded at a 27 per cent CAGR since FY21 to ₹25,923 crore, ahead of industry every year.
Group is the dominant segment at 69.5 per cent of FY26 revenue. Premium under management has compounded at a 27 per cent CAGR since FY21 to ₹25,923 crore, with group market share at 33.7 per cent (+340 bps year on year), roughly five times its nearest competitor. FY26 operating revenue grew 25.1 per cent to ₹904.8 crore, but EBITDA margin fell 201 bps to 19.3 per cent as Paramount TPA was consolidated. That dilution is already improving, quarterly margin recovered from 17.1 per cent in Q2FY26 to 20.3 per cent in Q1FY27.
FY26 is a trough rather than a trend – the drags are identifiable, dated and roll off together in FY27, while the franchise added 340 bps of group share and the balance sheet remains debt-free. We initiate coverage on Medi Assist Healthcare Services with a BUY rating and a target price of ₹477, giving a multiple of 22 at an EPS of 21.7 with a 45 per cent upside.