Following the recent decline in its stock price, Medanta has come back into focus among investors tracking the hospital sector. The broader market saw volatility due to rising crude oil prices amid tensions between the United States and Iran, which led to a decline in global markets. However, indications of improving conditions in West Asia supported a rebound in domestic equities, with the BSE Sensex and Nifty-50 gaining more than 1 percent in early trade.
Brokerage firm JM Financial has maintained a bullish outlook on Medanta, citing potential upside following the recent correction in the stock. The brokerage indicated a possible upside of up to 42 percent, positioning the stock as a long-term opportunity within the hospital sector.
JM Financial has reiterated its ‘BUY’ rating on Medanta, with a target price of Rs 1,382. Based on the previous closing price of Rs 974, the stock implies an upside potential of approximately 42 percent. Over the past one month, the stock has declined by about 12 percent, while it has fallen 15 percent over three months and 23.40 percent over six months. On a one-year and two-year basis, the stock has declined 18.47 percent and 20.60 percent, respectively.
Despite the recent declines, the stock has delivered a return of 113 percent over three years. Medanta is currently trading around 33 percent below its 52-week high of Rs 1,455.85, with a 52-week low of Rs 975.10. The company’s market capitalisation stands at Rs 27,447.53 crore on the BSE.
According to JM Financial analysts, operational momentum is expected to improve following the completion of audits by the National Accreditation Board for Hospitals and Healthcare Providers. This is expected to facilitate empanelment with hospitals and insurance companies. The process has already been completed at several locations, with the remaining expected to be completed soon.
The impact of new agreements is expected to reflect in the company’s earnings from February 2026. Patient volumes are projected to gradually reach the company’s targeted levels. JM Financial analysts estimate that the company’s income could gradually increase to around Rs 60 crore.
However, due to normalised expenses, the company may report a loss of Rs 20–25 crore in the fourth quarter of FY2026. Infrastructure related to cancer treatment, including equipment and doctor recruitment, is largely in place, with radiation therapy expected to commence shortly. This is expected to support earnings improvement and returns over the long term.
Analysts also indicated that the commencement of operations at Jewar Airport could lead to an increase in patient inflows. This is expected to be driven by patients travelling from outside regions for treatment, which could support hospital occupancy and revenue growth over the long term.
