Waya initiates coverage on Yatharth Hospital & Trauma Care Services Ltd. with a BUY recommendation. Waya expects an upside of 39% in 1 year and sets a target price of ₹765.

Yatharth Hospital is one of the leading multi-specialty hospital chains in North India, operating five major hospitals across Noida, Greater Noida, Faridabad and Jhansi. After recent acquisitions, the company now has 2,305 beds, making it one of the largest healthcare players in the Delhi-NCR region.

Yatharth has strong financials with revenue growing 31% YoY in FY25 to ₹880 crore, EBITDA of ₹220 crore and PAT of ₹131 crore. The company is almost debt-free after the ₹625 crore QIP and holds ₹437 crore net cash, giving it very strong financial stability. Occupancy improved from 54% to 61% and ARPOB grew 8% YoY, showing better patient mix and higher efficiency.

We believe Yatharth is well-placed for long-term growth, with revenue projected to increase from ₹880 crore in FY25 to over ₹1,600 crore by FY27E, driven by new hospitals becoming operational, rising occupancy, and stronger contribution from high-margin specialties.