The brokerage cited improving earnings visibility, margin expansion tailwinds and a more reasonable valuation backdrop as key drivers for its positive stance.
It noted that the stock has corrected sharply over the past six months due to concerns around the Noida greenfield facility and geopolitical tensions in the Middle East, but expects these factors to normalise in the coming quarters.
The brokerage highlighted that the company has limited exposure of about 2% of sales to Middle East patients, which can be offset by domestic demand and inflows from other geographies.
Operationally, the company continues to show steady growth, supported by strong performance at its Gurugram facility and improving occupancy levels across its network, which are trending toward 60% as newer assets scale up.
It also pointed to Medanta’s strong positioning in quaternary care, supporting robust average revenue per patient, comparable with peers such as Max Healthcare.
The company is expanding capacity, with plans to increase its bed count to around 6,382 by FY29 from 3,579 currently, which is expected to drive operating leverage and margin expansion.
The brokerage expects revenue, EBITDA and profit after tax to grow at a CAGR of 14%, 26% and 32%, respectively, over FY26 to FY28.
Global Health is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India.
On a consolidated basis, Global Health's net profit declined 33.51% to Rs 95.02 crore while net sales rose 18.83% to Rs 1121.05 crore in Q3 December 2025 over Q3 December 2024.
PAT was impacted by Noida hospital depreciation and finance cost in addition to initial operating losses. Additionally, PAT was further impacted due to statutory impact of new Labour Codes which is non-recurring in nature and classified as exceptional Items amounting to Rs 36.6 crore in Q3 FY26.