The Krishna Institute of Medical Sciences (KIMS) has done well in the last 4 years. The company has recently acquired a 100 per cent stake in Wizg’s Queens NRI Hospital. This hospital has a capacity of 200 beds. These hospital healthcare services are providing. Therefore, no major capital expenditure will be required in the next 2-3 years. This means that without capital expenses, this hospital will start to contribute to the company’s earnings.
Focus on expansion of healthcare services
Kims Has a target of two projects under the expansion plan. It has a project in Bengaluru and the other is in Thane, Mumbai. Both these hospitals are expected to start functioning in the second quarter of this financial year. Apart from this, the company is increasing the number of beds in its three units. The KIMS is focusing on increasing the capacity of its old hospitals along with new projects for expansion. This will increase the number of beds to 2,300 by FY27.
ARPOB rises to Rs 40,000
KIMS has performed well in the fourth quarter. Revenue growth was 26 percent and Ebitda growth was 25 percent. It has a hand of volume and average revenue per oxypay bed. The in-post volume increased 16 percent year-on-year basis, while the ARPOB increased to 21 percent year after year. The company’s arpob was Rs 20,000 in FY21, which increased to Rs 40,000 in FY25.
Success to reduce ALOS
Most new units of the company have cash and insurance based facilities. These units are not Imanildal under the Arogyasari Scheme. This keeps the ARPOB more for the company. This trend is also expected to continue in the future. The company has also been successful in reducing its average length of stay (ALOS). This was 5.5 days in FY21, which came down to 3.6 days in FY25. The lower the Alos will be as good for the company’s arpob. This helps in increasing the average revenue per patient.
Decline in shares on June 19
Krishna Institute of Medical Science shares declined on June 19. It fell 2.57 percent to close at Rs 648. But, in the last one year, this stock has rich the investors. During this time it has climbed about 55 percent. The shares are currently trading at 25 times the estimated EV/Ebitda of FY26. The share price is not visible. Investment in this stock can be increased in long -term terms.
