Starlit had entered into a Business Transfer Agreement (BTA) with Sahara India Medical Institute for purchase of Healthcare Undertaking consisting of 550 bedded Sahara Hospital, Lucknow, on a slump sale basis, MHIL said in an exchange filing.
CRL, a wholly-owned subsidiary of MHIL, which owns and operates Max Super Speciality Hospital, Vaishali and Max Medical Centre, Noida. This acquisition marks Max Healthcare’s entry into Lucknow, one of the fastest growing cities of Uttar Pradesh, the company said.
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Considering the performance of Medanta and Apollo Hospital (APHS) in Lucknow, the brokerage firm Motilal Oswal Financial Services (MOFSL) assumes MHIL to achieve EBITDA margin of 30 per cent over the next 12-18 months.
With this acquisition, MHIL has entered one of the promising cities from the healthcare perspective. Additionally, under-penetrated healthcare infrastructure in Central/Eastern UP and Bihar would aid the scale-up of hospital even faster, MOFSL said.
The brokerage firm raises its earnings estimate by 3 per cent for FY25 to factor in the addition of business from Sahara Hospital. “We expect a CAGR of 19 per cent/23 per cent in EBITDA/PAT over FY23-25 for MAX on the back of an 8 per cent CAGR in ARPOB, bed addition as well as improved occupancy at existing hospitals,” MOFSL said.