Stock To Buy Recommendation: Avendus Spark has initiated coverage on Dr Agarwal’s Health Care Limited (DAHL) with a BUY rating and a target price of Rs 495, citing strong growth fundamentals, scalable expansion and improving return metrics.
The brokerage firm sees a total potential return of 67% by FY30 assuming EBITDA CAGR of ~22% in FY26- 30E and an exit multiple of 25x on FY30E EBITDA.
Avendus Spark notes that DAHL’s revenue grew at a compounded annual growth rate of 32% over FY22-26E, primarily driven by a 37% growth in surgical revenues, which account for ~67% of total revenue.
The brokerage attributed the growth to aggressive network expansion (including acquisitions) which helped drive 29% CAGR growth in patient volumes and surgery volumes over the period. The company nearly tripled its network to 272 facilities as of Dec 2025 (from 94 in March 2021).
Management targets scaling the network to 500 facilities by FY30E, with 55-60 additions annually (~60% surgical centers), largely through greenfield expansion.
Avendus Spark said, “We expect network expansion to remain the key growth driver, with facilities added post-March 2025 contributing ~30% of our estimated FY30 revenue.”
The brokerage firm said that DAHL is well positioned to benefit from strong demand and consolidation in the eye care market.
The Indian eye care services market (estimated at Rs. 37800 cr in FY24) is expected to grow at a 12-14% CAGR in FY24-28E, driven by the high prevalence of eye disorders and rising demand for surgical correction.
Organised chains currently account for only ~15% of the Indian eye care services market, indicating significant headroom for consolidation. As the clear market leader in organized eye care (~1.5x the second-largest player in terms of FY25 revenue) with strong brand visibility, DAHL is well positioned to gain market share, Avendus Spark said.
