StockEdge Picks Hospital Chain for Top Healthcare Stock Watch

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Krishna Institute of Medical Sciences Stock Surges: A Deep Dive into Its Breakout and Long-Term Potential

By S JHA

MUMBAI, July 16, 2025 – Krishna Institute of Medical Sciences Ltd. (KIMS) has emerged as a standout performer in the Indian healthcare sector, with its stock gaining significant attention from investors and analysts alike. An analysis shared by StockEdge on its Telegram channel highlights KIMS’ impressive 72% surge over the past year, suggesting a breakout from its trading range with strong momentum.

StockEdge’s bullish outlook on KIMS underscores stock’s upward trajectory, emphasizing both technical strength and fundamental growth drivers. “KIMS is forming higher highs and higher lows on the weekly chart, a hallmark of a sustained uptrend. The stock is trading above its 50-day and 200-day Exponential Moving Averages (EMAs), with a Relative Strength Index (RSI) of ~64, indicating bullish momentum without being overbought,” said StockEdge in a note on its Telegram channel.

Strong volume on up days and a support range of ₹660–₹700 further bolster the technical case, added the stock advisory firm. “Momentum scores reflect consistent buying interest: 78/100 (1-month), 80/100 (3-month), and 90/100 (6-month),” it added.

KIMS operates a network of profitable hospitals, primarily in Telangana and Andhra Pradesh, with ~80% self-owned facilities, ensuring strong operational control and cost efficiency. Known for affordable, high-quality care, KIMS maintains high occupancy rates and healthy margins.

KIMS reported a 25% year-on-year (YoY) EBITDA growth, with net sales reaching ₹797 crore (up from ₹772 crore) and a profit after tax (PAT) of ₹106 crore. Newer hospital units are starting to break even, showcasing operational leverage.

“KIMS is aggressively expanding into Tier-2/3 cities and metros, with a new 200-bed multispecialty hospital in Guntur and upcoming projects in Bangalore (two facilities) and Thane (one facility) expected to be operational by Q2 FY26. The company aims to scale to 2,000 beds in Karnataka and 3,000 in Kerala, with an investment of ₹400–₹600 crore in FY25,” added StockEdge in its note.

Average Revenue Per Occupied Bed (ARPOB) is also growing steadily for the hospital chain. “While rising net debt (projected at ₹2,100 crore by FY26) and initial losses from new projects (₹32–₹40 crore) pose challenges, KIMS’ execution remains solid. KIMS is a compelling healthcare investment with proven operational strength, regional dominance, and a clear expansion strategy, making it a must-watch for both short-term traders and long-term investors,” argued StockEdge.

ChartAtlas on X noted KIMS’ breakout above a key horizontal resistance of ₹692.20 on the daily chart, supported by a 2x volume surge and strong momentum (RSI > 60). The weekly chart also confirms a high-quality setup, with the stock gaining 13% from a prior call at ₹627, reinforcing its bullish trajectory.

LnprCapital on X highlighted KIMS’ market cap of ₹28,551.86 crore, with a P/E ratio of 75.71, ROCE of 15.14%, and ROE of 19.02%. The firm noted a 3-year sales growth of 22.51% and an operating profit margin (OPM) of 25.79%, underscoring KIMS’ financial health and growth consistency.

Axis Securities (May 21, 2025) stated that KIMS is a preferred investment due to its dual focus on healthcare and education. Analysts suggest buying at ₹651–₹658, with a target of ₹706 and a stop loss at ₹642, despite regulatory risks and challenges in new facilities, said IndMoney in a report.

(Disclaimer: This article makes no recommendation for buy or sell of any stock)

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