Can Fortis Healthcare share price cross its 52-week high? Here’s what Citi has to say

Synopsis: Citi initiates coverage on Fortis Healthcare with a Buy rating, targeting Rs. 1,120, indicating a 33% upside from the current levels. Hospital EBITDA is expected to grow at 23% CAGR (FY26–FY28), supported by capacity expansion and margin gains.

This is a leading integrated healthcare service provider in India with verticals of the company primarily comprising hospitals, diagnostics, and day care specialty facilities is now in focus after Citi gave a target of 33% upside from the current levels.

With a market capitalisation of Rs. 63,412 cr, the shares of Fortis Healthcare Ltd closed at Rs. 839.95 per share, down from its previous close of Rs. 843.05 per share. The stock gained 42% over the past year, flat in the last six months, and declined 5% over the past month.

Citi on Fortis Healthcare 

Global brokerage Citi has initiated coverage on Fortis Healthcare Ltd. with a Buy recommendation and set a price target of Rs. 1,120, indicating an upside potential of nearly 33% from current market levels. The brokerage remains optimistic on the company’s medium-term growth outlook.

Citi expects Fortis Healthcare’s hospital EBITDA to grow at a healthy 23% CAGR during FY26–FY28, driven by sustained demand for healthcare services and improving operational leverage across its hospital network.

Expansion and Margin Growth to Drive Performance

According to Citi, growth will be supported by the ramp-up of new bed capacity, continued margin expansion at existing hospitals, and Fortis Healthcare’s disciplined execution strategy, which strengthens earnings visibility over the coming years.

While the company reported a marginal decline in net profit in Q3, Citi believes strong revenue growth, solid operating performance, and a steadily improving return on capital employed (RoCE) could support further valuation upside.

Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics, and day care speciality facilities. Currently, the company operates 33 healthcare facilities (including JVs and O&M facilities) across 11 states. The Company’s network comprises over 5,700 operational beds (including O&M beds) and 400 diagnostics labs.

The Specialty Mix for H1 shows a diversified distribution across medical specialties. Cardiac leads at 16.8%, followed closely by Oncology (16.3%) and Other IPD (16.2%). 

OPD and others contribute 15.6%, while Orthopedics accounts for 9.1%. Neuro (8.1%), Renal (7.0%), Gastro (5.0%), Gynae (3.2%), and Pulmonology (2.6%) make up the remainder, reflecting a balanced mix across key specialties.

The company has a Return on Capital Employed (ROCE) of 12.0% and a Return on Equity (ROE) of 10.1%, with a debt-to-equity ratio of 0.34. It has also achieved impressive profit growth, registering a 70.3% CAGR over the past five years.

Sales of the company increased from Rs. 2,167 cr in Q1FY26 to Rs. 2,331 cr in Q2FY26. Operating profit rose to Rs. 556 cr from Rs. 491 cr. Net profit increased from Rs. 267 cr to Rs. 329 cr over the same period.

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