ASTERDM - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.3

Here’s a nuanced dive into ASTER DM Healthcare Ltd. (ASTERDM) — a regional healthcare powerhouse with expanding earnings, moderate debt levels, and premium valuations, yet confronting margin pressures and patchy investor sentiment.

🧾 Core Financials Snapshot

EPS: ₹108 — strong per-share earnings, though the Stock P/E of 76.9 implies rich pricing.

ROE: 10.5%, ROCE: 10.7% — below top-tier peers; reflects modest asset efficiency.

Qtr Profit Var: +136% — sharp improvement in profitability signals growth traction.

Debt-to-Equity: 0.59 — healthy but needs monitoring as scale expands.

PAT Qtr: ₹98.6 Cr vs. ₹70 Cr — earnings acceleration validates operational gains.

📊 Valuation Matrix

Metric Value Commentary

P/E Ratio 76.9 🚨 Much higher than Industry PE: 69.2 — implies stretched valuation

P/B Ratio ~8.63 Premium multiple given Book Value ₹68.6

PEG Ratio -8.78 ⚠️ Negative PEG suggests disproportionate pricing vs earnings growth

Dividend Yield 0.68% Minor returns — typical of growth-focused healthcare firms

Intrinsic Value Below CMP Based on yield and margins, stock trades above intrinsic worth

🏥 Business Model & Competitive Edge

Operator of hospitals, clinics, and pharmacies across India and GCC.

Strength in tertiary and quaternary care, with aggressive expansion into Tier 2/3 cities.

Health-tech ambitions and strategic geographic diversification boost long-term viability.

Brand trust and clinical depth are key levers in patient retention.

FII Hold ↓ -2.02% — reflects overseas caution.

DII Hold ↑ +0.70% — mild domestic confidence.

📉 Technical Signals & Price Action

CMP ₹592 near DMA 50 ₹579, above DMA 200 ₹508 — implies medium-term uptrend.

MACD: 0.58, RSI: 49.9 — neutral zone, no clear momentum bias.

Volume Drop vs weekly average — reduced participation may limit near-term volatility.

52W Index: +75.4% — strong rally from ₹336 low to ₹675 high.

🎯 Entry Zone & Investment View

Suggested Entry: ₹550–₹575 — closer to support levels and moving average zone.

Long-Term Holding Thesis

High revenue visibility from healthcare services.

Potential rerating if ROE/ROCE improve and debt moderates.

A worthy addition for thematic portfolios targeting healthcare transformation in India and GCC.

Want me to compare ASTERDM against Apollo Hospitals, Narayana Health, or Fortis to bring out capital efficiency and valuation asymmetries? I can chart that out for sharper clarity. Let’s decode the healthcare battleground 📊💉.

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