Broker’s Call: Dr Agarwal’s Health Care (Buy)

PUDUCHERRY, 27/02/2018: A view of Dr. Agarwal's Eye Hospital in Puducherry on February 27, 2018. Photo: S.S. Kumar | Photo Credit: KUMAR SS

Target: ₹555

CMP: ₹482.00

Dr. Agarwal’s Health Care (DAHL) is among the fastest-growing organised eye-care chains in India, well-positioned to capitalise on a structurally-strong industry opportunity driven by rising visual impairment, ageing demographics and increasing screen exposure. The Indian eye-care market (about ₹37,800 crore in FY24) is expected to grow 12-14 per cent CAGR to ₹55,000-65,000 crore by FY28.

The company’s aggressive yet calibrated network expansion – scaled 13x since 2010 to 272 facilities as of 9MFY26 – combined with its hub-and-spoke model, enables rapid geographic penetration with strong operating leverage.

Growth visibility remains robust, underpinned by sustained expansion in surgical volumes (35 per cent CAGR over FY22-25) and rising patient footfall (about 31 per cent CAGR), supported by network additions and improving per-clinic productivity. Increasing premiumisation is expected to drive over 20 per cent revenue CAGR over the medium term.

Additionally, DAHL offers strong optionality through its adjacencies, particularly opticals and pharma products, which benefit from captive demand, cross-selling and brand recall.

Overall, DAHL presents a compelling play on India’s underpenetrated and fast-growing eye-care market, aided by scalable infrastructure, strong execution and favourable industry tailwinds. We initiate coverage with a Buy rating and a target price of ₹555, valuing the company at 22x FY28E EV/EBITDA.

Published on May 21, 2026