Up 36% from IPO price, SMIFS sees another 60% upside in this hospital stock

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₹650, implying an upside of 60 percent from its current market price of 406.75, as on May 27, 2024."Currently, the stock is trading at a comforting valuation on FY26E EV/EBITDA of 12.7x. Given Yatharth's significant growth opportunities in its local market and its pledge to increase revenue without sacrificing return ratios, there's a clear sign that the gap in valuation from peers is likely to wane in the coming times.

We value the stock at 20x and arrive at a target price of ₹650 per share," said the brokerage.The stock, which was listed in August last year, has gained 36 percent from its issue price of ₹300. It hit its record high of ₹503.90 on February 28, 2024, but has slid over 19 percent from its peak since then.

However, it continues to trade around 34 percent higher from its 52-week low of ₹304, hit on August 7, 2023, its listing day.Just in 2024 YTD, the stock is up 8 percent, giving positive returns in 3 of the 5 months so far. It has lost 8.4 percent in May so far after a 6 percent gain in April.

In March as well, the stock dipped 10.6 percent but it was positive for the first 2 months of the current calendar year. It rallied 24 percent in February and was flat but in the green in January, up 0.5 percent.In the March quarter (Q4FY24), the company reported a 121 percent year-on-year (YoY) surge in consolidated net profit at ₹38.3 crore as against ₹17.3 crore in the same quarter last year.