Goldman Sachs
May 11, 2026
Assessing the Potential Impact of New Hospital in Amaravati Market
Single Stock ReportEquitiesHealth Care
KIMS has announced plans for a new 500-bed hospital in Amaravati, AP, which is expected to see strong financial returns due to lack of local competition and growing population density.
Key Takeaways
- 1.KIMS has entered a 60-year lease for a 500-bed multi-speciality hospital in Amaravati, Andhra Pradesh.
- 2.Proprietary analysis indicates zero existing NABH-certified private hospital competition within a 5km radius of the planned site.
- 3.The project is expected to generate high-teen post-tax RoCE within 3-4 years of commencement.
Table of Contents
- What happened?
- Key rationale for the deal
- What does our proprietary geo-spatial analysis tell us about competition?
- About Amaravati and Andhra Pradesh
- Price Target, Methodology and Risks - KRII.BO
- GS Forecast
- Disclosure Appendix
- Price target and rating history chart(s)
- Target price history table(s)
- Regulatory disclosures
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Authors
Karan Vora, CFAShyam Srinivasan, CFA
Securities
KIMS
Themes
Healthcare Infrastructure ExpansionGeo-spatial Competition Analysis
Regions
Asia PacificIndia
