KIMS (Krishna Institute of Medical Sciences) is charting an impressive growth trajectory, with strategic capital expenditure plans that are set to propel the company forward. In this blog post, we will explore the company’s expansion strategies and how they are expected to contribute to KIMS’ continued success.

1. Planned Capital Expenditure: In its recent Q4 earnings call, KIMS management revealed its ambitious plans for capital expenditure in the upcoming fiscal year. The company intends to allocate approximately Rs 700 crore towards capex in FY24. A significant portion of this investment, around Rs 400-450 crore, will be directed towards the development of its Thane unit, with the remaining funds dedicated to enhancing the facilities in Nashik and Bengaluru.
2. Bed Addition and Empanelment of New Doctors: ICICI Securities, a leading financial institution, has expressed confidence in KIMS’ growth prospects. They believe that the company’s plans to add beds in its new hospitals in Nashik, Bengaluru, and Thane will contribute to revenue growth. Additionally, the empanelment of new doctors in the recently acquired Sunshine facilities is expected to further boost revenues and strengthen KIMS’ position in the healthcare sector.
3. Exploring Expansion Opportunities: KIMS is not resting on its laurels and is actively exploring additional expansion opportunities. Currently, the company is evaluating a plot in Malad to expand its Maharashtra cluster. This strategic move aligns with KIMS’ commitment to continuous growth and catering to the evolving healthcare needs of the population.
4. Strong Capex Outlay and Acquisition: KIMS has demonstrated its commitment to growth through its significant capital expenditure. In FY23, the company allocated Rs 570 crore, primarily for the acquisition of Sunshine facilities in Bengaluru and Nashik. This acquisition has not only expanded KIMS’ geographical presence but has also contributed to its revenue generation.

KIMS’ strategic capital expenditure plans, including bed addition, empanelment of new doctors, and exploration of expansion opportunities, underscore its commitment to sustained growth. The company’s investments in infrastructure and acquisitions have positioned it favorably in the healthcare sector. Investors and industry experts are closely watching KIMS as it continues to make strides in its expansion journey.

Analyzing the technical chart of KIMS, it becomes evident that prices are consolidating within a rising wedge pattern. Based on this observation, I would recommend considering a “buy on decline” strategy, where investors can look for opportunities to enter the market at lower price levels. It is advisable to set the stop loss at the last swing low to manage risk effectively. By following this approach, investors can potentially capitalize on the anticipated upward movement in KIMS’ price.

Note:
Analysts, too, are positive about the company’s expansion in recent times.
Prabhudas Lilladher believes recent acquisitions of Sunshine, Nashik and Nagpur are value accretive. which will continue to aid the company’s growth momentum.
Tata AIA Life Insurance, Axis Mutual Fund, Mirae Asset Large Cap Fund, HDFC Life Insurance and ICICI Prudential Life Insurance Co some major domestic institutional investors holding a stake in the company.
Among foreign institutional investors, Amansa Holdings, Nomura India Investment Fund and Emerald Investments hold a stake in KIMS.

Declining Stock and Solid Fundamentals: Is The Market Wrong About Krishna Institute of Medical Sciences Limited (NSE:KIMS)?