In fact, JPMorgan’s price target is below IKS Health’s
IPO price of ₹1,329.
JPMorgan believes that IKS Health should benefit from under-penetration of outsourcing, a stable growth profile and structurally higher margins.However, the acquisition of AQuity has complicated the equity story from a high-growth, high margin business to one of organic growth and margin recovery.
Additionally, IKS Health is trading at multiples of 39 times financial year 2026 price-to-earnings and 31 times financial year 2027 price-to-earnings, which are 50% to 60% higher in comparison to peers.
The company will have to surprise on both organic growth acceleration and margin expansion, which will be the key to sustain these multiples, JPMorgan wrote in its note.Jefferies expects IKS Health’s revenue in US Dollar terms to grow at a Compounded Annual Growth Rate of 14% over financial year 2025-2027 courtesy of the rising outsourcing and the company’s integrated offerings.
The company’s Earnings Per Share (EPS) may grow at a 34% CAGR during the same time period aided by the above highlighted advantages and an improvement in EBITDA margins along with deleveraging, Jefferies wrote in its note
However, the brokerage sees limited upside for the stock, considering its valuations, which are at 36 times financial year 2026 price-to-earnings, a 50% to 90% premium compared to its peers.
None among the four analysts who have coverage on IKS Health have a “buy” rating on the stock. Instead, all four of them have a “hold” rating.
IKS Health shares fell 12% on Monday after its shareholder lock-in period came to an end. That freed up 42 lakh shares of the company or 2% of its outstanding equity.
The stock has now declined 33% from its post-listing high of ₹2,189.
