ASTERDM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ASTERDM | Market Cap | 28,315 Cr. | Current Price | 546 ₹ | High / Low | 732 ₹ |
| Stock P/E | 85.8 | Book Value | 85.6 ₹ | Dividend Yield | 0.88 % | ROCE | 139 % |
| ROE | 200 % | Face Value | 10.0 ₹ | DMA 50 | 603 ₹ | DMA 200 | 594 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | -0.20 % | PAT Qtr | 58.9 Cr. | PAT Prev Qtr | 105 Cr. |
| RSI | 40.2 | MACD | -17.4 | Volume | 12,34,375 | Avg Vol 1Wk | 6,87,896 |
| Low price | 386 ₹ | High price | 732 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.28 |
| 52w Index | 46.3 % | Qtr Profit Var | -11.7 % | EPS | 5.86 ₹ | Industry PE | 45.3 |
📊 Financials: ASTERDM shows mixed fundamentals with ROCE at 139% and ROE at 200%, which appear unusually high due to accounting adjustments rather than sustainable profitability. Quarterly PAT declined from ₹105 Cr. to ₹58.9 Cr., reflecting earnings pressure. Debt-to-equity at 0.28 indicates manageable leverage. EPS of ₹5.86 is modest relative to its market cap of ₹28,315 Cr.
💹 Valuation: The stock trades at a P/E of 85.8, far above the industry average of 45.3, suggesting significant overvaluation. P/B ratio is ~6.38 (546/85.6), which is expensive compared to peers. PEG ratio of 0.28 indicates valuations are attractive relative to growth, but earnings volatility distorts the picture. Dividend yield of 0.88% provides limited income support.
🏢 Business Model & Competitive Advantage: ASTERDM operates in healthcare services, with hospitals, clinics, and pharmacies across India and the Middle East. Its competitive advantage lies in geographic diversification, brand recognition, and integrated healthcare offerings. However, declining quarterly profits and stretched valuations limit investor comfort despite strong industry positioning.
📈 Entry Zone: Technicals show RSI at 40.2 (slightly oversold) and MACD negative, with price below DMA 50 & 200. Accumulation may be considered near ₹500–525 for long-term investors. Current valuations are stretched, so cautious entry is recommended.
Positive
- Strong ROCE (139%) and ROE (200%) on paper.
- Low debt-to-equity ratio (0.28) ensures financial stability.
- PEG ratio of 0.28 suggests growth-adjusted valuation attractiveness.
Limitation
- High P/E ratio (85.8) compared to industry average (45.3).
- P/B ratio (~6.38) indicates expensive valuation.
- EPS of ₹5.86 is modest relative to market cap.
Company Negative News
- Quarterly PAT declined from ₹105 Cr. to ₹58.9 Cr. (-11.7%).
- FII holdings decreased by -0.26% and DII holdings by -0.20%.
- Weak technical momentum with MACD negative.
Company Positive News
- Strong brand presence in healthcare across India and Middle East.
- RSI at 40.2 indicates slightly oversold levels, potential rebound zone.
Industry
- Healthcare sector benefits from rising demand for medical services and diagnostics.
- Industry P/E at 45.3 is much lower than ASTERDM, showing sector-wide value opportunities.
- Government push for healthcare infrastructure supports long-term growth.
Conclusion
🔎 ASTERDM is financially stable with strong brand presence and geographic diversification but faces declining profits and stretched valuations. Entry near ₹500–525 may be considered for long-term investors willing to tolerate volatility. Conservative investors should wait for improved earnings visibility before committing to long-term holding.