Shares of Jeena Sikho Lifecare (JSLL) surged 20 per cent to hit an intraday high of ₹708.70 on the NSE on Wednesday after Choice Institutional Equities reiterated its ‘Buy’ rating on the stock and revised its target price to ₹1,000 from ₹1,200.
At 10:55 AM, the stock was trading at ₹671.50, up 13.7 per cent from its previous close. The revised target price implies a potential upside of around 41.4 per cent from the day’s intraday high.
Choice has raised its FY28 revenue estimate to ₹1,500 crore in line with management guidance. However, it has adopted more conservative long-term assumptions by lowering its FY29-FY35 revenue CAGR estimate to 25 per cent from 30 per cent earlier.
Building a pan-India network; OTC business gains traction
According to Choice, JSLL is rapidly expanding its Ayurveda healthcare network through new centre launches and bed additions. The company is targeting 7,000-10,000 beds over the next three to five years while maintaining a capital-efficient operating model.
The brokerage said the OTC business is emerging as a key growth driver, supported by nine recent product launches and a robust pipeline.
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Q4 performance impacted by one-off costs
JSLL reported revenue of ₹215.6 crore in Q4FY26, up 54.8 per cent year-on-year (Y-o-Y) but down 2.8 per cent quarter-on-quarter (Q-o-Q). The figure was below Choice’s estimate of ₹246.1 crore. Ebitda rose 70.2 per cent Y-o-Y but declined 22.6 per cent Q-o-Q to ₹77.9 crore, compared with the brokerage’s estimate of ₹112.5 crore. Ebitda margin expanded 328 basis points Y-o-Y but contracted 929 basis points sequentially to 36.1 per cent against the estimate of 45.7 per cent.
The brokerage attributed the sequential decline in margins to one-off employee-related provisions of ₹7 crore, a one-time expected credit loss (ECL) provision of ₹5 crore, and Ind AS transition-related adjustments of ₹9 crore.
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Hospital expansion remains a key growth lever
Choice said JSLL is executing one of the most ambitious expansion plans in India’s Ayurveda healthcare segment, with a target of 7,000-10,000 beds over the next three to five years.
The company has developed 2,861 beds so far, of which 2,300 are operational. Operational bed capacity is expected to reach 3,000-3,500 by FY27, aided by the activation of 561 non-operational beds over the next three to five months and 445 beds currently under development.
“The model remains highly capital-efficient, requiring only ₹3-4 lakh per bed and delivering payback within 12-18 months for hospitals and less than six months for smaller facilities,” said Choice.
OTC segment may scale up sharply
The brokerage expects JSLL’s OTC business to emerge as its most scalable growth engine.
Its flagship Pet Yakrit Pleeha Shuddhi Kit has crossed ₹10 crore in monthly sales. With nine products currently in the market, most launched over the last two to three months, and several new launches in the pipeline, management is targeting OTC revenue of ₹500 crore over the next two years.
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