ASTERDM - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

📊 Core Financials Overview

Profitability

ROE of 200% and ROCE of 139% appear unusually high and may reflect one-off accounting adjustments or asset-light operations. These figures should be verified for sustainability.

EPS of ₹5.57 is modest, and quarterly PAT has remained flat (₹83.8 Cr vs ₹82.4 Cr), indicating stable but not accelerating earnings.

Growth & Cash Flow

Quarterly profit variation of -98.5% is likely a data anomaly or misclassification, as PAT remained steady.

Dividend yield of 0.81% is low, suggesting reinvestment focus over shareholder payouts.

Debt-to-equity ratio of 0.53 is healthy, indicating moderate leverage.

📉 Valuation Metrics

Metric Value Commentary

P/E Ratio 98.6 Extremely high — significantly overvalued vs. industry PE of 57.3

P/B Ratio ~10.3 Premium valuation relative to book value ₹59.4

PEG Ratio 0.33 Attractive — implies strong growth at a reasonable price

Intrinsic Value ₹510–540 Current price of ₹614 is above fair value zone

🏥 Business Model & Competitive Edge

Sector: Aster DM Healthcare operates in hospitals and allied services, with a strong presence in India and the Middle East.

Moat: Brand recognition, diversified revenue streams (hospital services, pharma, consultancy), and strategic expansion plans.

Growth Strategy: ₹1,900 Cr investment planned for hospital network expansion across India

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Ownership Trends: FII holdings declined (-2.02%), while DII holdings increased (+0.70%) — mixed institutional sentiment

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📈 Technical & Entry Guidance

Current Price: ₹614 — near 50 DMA (₹607), above 200 DMA (₹539), indicating bullish trend.

RSI: 47.9 — neutral zone, no strong momentum.

MACD: Positive at 4.85 — mild bullish signal.

Entry Zone: ₹540–570 offers better value and downside cushion.

🕰️ Long-Term Holding Outlook

Strengths: Strong return metrics, scalable business model, and expansion plans.

Risks: Overvaluation, low dividend yield, and potential earnings volatility.

Recommendation: Accumulate on dips near ₹550. Hold for 3–5 years to benefit from healthcare sector growth and infrastructure expansion.

You can explore future price targets and valuation insights on Stocks-Buy’s analysis of ASTERDM. Let me know if you’d like a comparison with Apollo Hospitals or Narayana Health.

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stockanalysis.com

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economictimes.indiatimes.com

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