ICICI Securities starts Entero Healthcare at Buy with Rs 2,100 target

ICICI Securities cited Entero Healthcare’s top-three position in Indian healthcare distribution, above-peer margins, acquisition-led scale-up and medical-device expansion. The brokerage values the company at 17x FY28E EV/EBITDA, a 10% premium to Keimed.

— Source publishedTue, 1 Sept, 2026, 09:36 IST·First seen Tue, 1 Sept, 2026, 10:18 IST·Source NDTV Profit

What happened

ICICI Securities initiated Entero Healthcare with a Buy rating and Rs 2,100 target, citing its top-three Indian healthcare distribution position, superior

Key facts

  • Buy rating
  • Target price: Rs 2,100
  • 17x FY28E EV/EBITDA valuation
  • 10% premium to Keimed valuation
  • 28.6x FY28E earnings
  • 22.8x FY29E earnings
  • 13.9x FY28E EV/EBITDA
  • 11x FY29E EV/EBITDA
  • 4% Entero margin versus 2-3% peers
  • 22 acquisitions in the last four years
  • Acquired entities account for about 29% of FY26 revenue

Why this matters

Entero’s 22 acquisitions in four years demonstrate an active roll-up strategy, signaling continued potential for targeted deals that add regional reach, distribution density and medical-device capabilities.

What to watch

  • Quarterly organic revenue growth versus acquisition-led revenue contribution.
  • EBITDA margin sustainability relative to healthcare-distribution peers and management's integration targets.
  • Net debt, interest costs, operating cash flow and working-capital days following acquisitions.
  • Number, size, geography and valuation of incremental acquisitions.
  • Medical-device revenue mix, manufacturer tie-ups and hospital/customer additions.
  • Any change in supplier credit terms, pricing pressure or competitive response from national and regional distributors.
  • Prioritize post-acquisition integration, including ERP, procurement, warehouse utilization and sales-force consolidation across recently acquired businesses.
  • Use improved market visibility to evaluate disciplined bolt-on acquisitions in underpenetrated regional clusters rather than pursuing scale-only deals.
  • Expand higher-margin medical-device distribution through manufacturer partnerships, hospital-channel penetration and bundled offerings.
  • Demonstrate cash conversion by reducing receivable days, optimizing inventory turns and disclosing acquisition-level profitability milestones.
  • Provide clearer investor disclosures on organic versus acquired growth, leverage, integration costs and margin progression.