Stock Pick: MD Medical Group IPJSC (MOEX: MDMG)
Portfolio: Russia Portfolio. Primary listing: Moscow Exchange. Sector: Russian private healthcare, fertility, maternity, diagnostics and outpatient clinics.
MD Medical Group is my preferred new Russia Portfolio pick because it adds healthcare exposure that is distinct from the existing PJSC X5 Corporate Center retail holding. The company combines defensive local-currency demand, strong growth in private healthcare services, high margins, regular dividends and a debt-light balance sheet.
Why MDMG Now?
MDMG reported 2025 revenue of RUB 43.455 billion, up 31.2% year over year, with EBITDA up 24.4% to RUB 13.289 billion and net profit up 8.5% to RUB 11.035 billion. The Q1 2026 update was also strong: revenue increased 32.1% year over year to RUB 11.834 billion, supported by delivery services, IVF, outpatient clinics and the integration of the Expert medical centers network.
The investment case over the next six months is not based on a speculative turnaround. It is based on visible operating momentum, the ramp-up of new and acquired clinics, potential continuation of dividends, and a valuation that appears reasonable for a profitable private healthcare platform with no bank debt.
12-Month Catalysts
- Clinic and hospital expansion: New facilities in Moscow, Novorossiysk, Tula and other regions should keep patient-flow growth visible into the next reporting periods.
- Expert network integration: The 2025 acquisition materially expanded diagnostics and regional coverage; additional utilization and cost discipline could support margin resilience.
- Dividend visibility: The company paid RUB 42 per share for 6M 2025 and states that up to 100% of profit may be allocated to dividends, subject to board and shareholder approvals.
- Index and liquidity support: MDMG is included in MOEX/RTS index calculation bases, which can support local institutional attention.
Valuation and Balance Sheet
Using approximately 75.125 million shares outstanding and a recent market price around RUB 1,300 per share, MDMG’s market capitalization is roughly RUB 98 billion, or about USD 1.2 billion depending on the exchange rate used. Against 2025 net profit of RUB 11.035 billion and EBITDA of RUB 13.289 billion, the stock screens at roughly 9x earnings and about 7x EBITDA before adjusting for IFRS lease liabilities. The company reported RUB 2.729 billion of cash at year-end 2025 and no raised debt financing, although IFRS 16 lease liabilities are material.
Sanctions, Access and Investability
This is a Russia-listed security, so investability depends heavily on the investor’s jurisdiction, broker and sanctions status. U.S. Treasury guidance states that U.S. persons are prohibited from purchasing both new and existing debt and equity securities issued by Russian Federation entities, and OFAC has designated MOEX, NSD and NCC. Therefore, for U.S. persons and many Western investors, MDMG is not realistically investable through normal channels today; this pick is suitable only for a model portfolio or for investors who are legally permitted and operationally able to trade MOEX securities. I did not identify company-specific SDN status for MD Medical Group in the sources reviewed, but this is not a legal opinion and sanctions screening must be refreshed before any transaction.
Key Risks
- Sanctions and market-access risk: Foreign investor access to MOEX securities remains severely constrained, and further sanctions, blocked settlement infrastructure or dividend-transfer restrictions could impair liquidity and realizable returns.
- Execution and margin risk: Rapid expansion, wage inflation, clinic ramp-up costs and integration of the Expert network could pressure margins or dilute returns if utilization underperforms.
Risk disclaimer: This article is for informational and research purposes only and is not personalized financial, legal or sanctions advice. Russian securities involve exceptional political, sanctions, liquidity, settlement and currency risks.