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Mergers And Expansion Will Unlock India's Healthcare Potential

ASTE
ASTERDM
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on04 Aug 2025

Fair value Increased 6.32%
Previous
AnalystConsensusTarget's Fair Value
₹659.00
6.2% undervalued intrinsic discount
14 Aug
₹618.45
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1Y
57.2%
7D
2.4%

Despite a notable rise in both the discount rate and future P/E ratio, analysts have increased their fair value estimate for Aster DM Healthcare, with the consensus price target rising from ₹619.80 to ₹659.00.


What's in the News


  • Incorporated two wholly owned subsidiaries in Bengaluru: Aster DM Super-Specialty Hospital (Yeswanthpur) and Aster DM Super-Specialty Hospital (Sarjapur), to set up and operate new hospitals.
  • Board meeting scheduled to consider and approve unaudited financial results for the quarter ended June 30, 2025.
  • Rumored to be a potential, but not yet committed, bidder for the Sahyadri Hospitals acquisition.
  • Recommended a final dividend of INR 1 per equity share for FY 2024-25, subject to shareholder approval.
  • Entered into a 30-year lease agreement for a built-to-suit multi-specialty hospital; planned to have 300 beds by FY 2027 and 430 beds by FY 2029.

Valuation Changes


Summary of Valuation Changes for Aster DM Healthcare

  • The Consensus Analyst Price Target has risen from ₹619.80 to ₹659.00.
  • The Discount Rate for Aster DM Healthcare has significantly risen from 10.73% to 12.55%.
  • The Future P/E for Aster DM Healthcare has significantly risen from 49.26x to 56.27x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.