ASTERDM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | ASTERDM | Market Cap | 36,323 Cr. | Current Price | 701 ₹ | High / Low | 732 ₹ |
| Stock P/E | 111 | Book Value | 84.3 ₹ | Dividend Yield | 0.71 % | ROCE | 10.8 % |
| ROE | 8.94 % | Face Value | 10.0 ₹ | DMA 50 | 663 ₹ | DMA 200 | 621 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 1.45 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 58.9 Cr. |
| RSI | 58.3 | MACD | 13.7 | Volume | 5,40,117 | Avg Vol 1Wk | 11,01,332 |
| Low price | 497 ₹ | High price | 732 ₹ | PEG Ratio | 4.69 | Debt to equity | 0.31 |
| 52w Index | 86.8 % | Qtr Profit Var | 3.43 % | EPS | 5.17 ₹ | Industry PE | 47.1 |
📊 Financials: ASTERDM shows modest fundamentals with ROE at 8.94% and ROCE at 10.8%, reflecting average efficiency. Debt-to-equity ratio of 0.31 indicates moderate leverage. EPS of ₹5.17 is relatively low, though quarterly PAT improved from ₹58.9 Cr. to ₹85.3 Cr. (+3.43%), showing earnings recovery momentum.
💹 Valuation: Current P/E of 111 is significantly above industry average (47.1), suggesting severe overvaluation. PEG ratio of 4.69 highlights expensive growth prospects. P/B ratio (~8.3) is stretched compared to book value ₹84.3, limiting intrinsic value comfort.
🏢 Business Model: ASTERDM operates in healthcare services, benefiting from rising demand in hospitals and diagnostics. Competitive advantage lies in brand presence and sectoral growth tailwinds. However, profitability metrics remain weak, and valuations are stretched.
📈 Entry Zone: Fair entry closer to ₹640–670, below DMA 50 (₹663) and DMA 200 (₹621). Current price ₹701 is above fair accumulation zone, making staggered buying advisable only on corrections.
📌 Long-Term Holding: Suitable for cautious long-term investors (3–5 years). Strong sector outlook supports holding, but stretched valuations and modest efficiency require strict monitoring. Partial profit booking near ₹720–730 resistance is advisable.
Positive
- Quarterly PAT recovery (+3.43%)
- DII holdings increased (+1.45%), showing domestic confidence
- MACD (13.7) and RSI (58.3) indicate bullish momentum
- Dividend yield of 0.71% provides modest income support
Limitation
- High P/E (111) vs industry average (47.1)
- Weak ROE (8.94%) and ROCE (10.8%)
- PEG ratio of 4.69 indicates expensive growth
- EPS of ₹5.17 is modest relative to valuation
- FII holdings decreased (-1.28%), showing reduced foreign confidence
Company Negative News
- No major external negative news, but valuation concerns persist
- Decline in foreign institutional holdings (-1.28%)
Company Positive News
- Quarterly PAT improved from ₹58.9 Cr. to ₹85.3 Cr.
- DII holdings increased (+1.45%), reflecting domestic support
Industry
- Healthcare sector benefiting from rising demand and structural growth
- Peers trade at lower valuations, making ASTERDM relatively expensive
Conclusion
ASTERDM is a speculative candidate with modest efficiency and stretched valuations. Entry is recommended near ₹640–670 for margin of safety. Long-term investors can hold cautiously with a 3–5 year horizon, booking partial profits near ₹720–730 resistance unless profitability improves significantly.