⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FORTIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | FORTIS | Market Cap | 62,862 Cr. | Current Price | 833 ₹ | High / Low | 1,105 ₹ |
| Stock P/E | 340 | Book Value | 122 ₹ | Dividend Yield | 0.12 % | ROCE | 3.27 % |
| ROE | 1.41 % | Face Value | 10.0 ₹ | DMA 50 | 895 ₹ | DMA 200 | 859 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.19 % | PAT Qtr | 105 Cr. | PAT Prev Qtr | 38.0 Cr. |
| RSI | 35.1 | MACD | -17.9 | Volume | 3,89,294 | Avg Vol 1Wk | 15,67,228 |
| Low price | 521 ₹ | High price | 1,105 ₹ | PEG Ratio | 2.16 | Debt to equity | 0.22 |
| 52w Index | 53.4 % | Qtr Profit Var | 9.77 % | EPS | 2.31 ₹ | Industry PE | 45.2 |
📊 Core Financials
- Revenue growth: PAT at 105 Cr vs 38 Cr in previous quarter, showing improvement, but overall margins remain weak.
- Profit margins: EPS at 2.31 ₹, very low relative to market cap.
- Debt ratios: Debt-to-equity at 0.22, manageable but adds some leverage risk.
- Cash flows: Supported by profitability, though weak returns limit efficiency.
- Return metrics: ROCE 3.27 %, ROE 1.41 % — poor efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 340, extremely high compared to industry average (45.2), suggests severe overvaluation.
- P/B ratio: Current Price / Book Value ≈ 6.8, expensive relative to assets.
- PEG ratio: 2.16, indicates valuation stretched relative to growth.
- Intrinsic value: Current valuation not justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in healthcare and hospital services sector.
- Strong brand presence in private healthcare with pan-India network.
- Competitive advantage through scale and brand recognition, but profitability challenges limit financial strength.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near 520–600 ₹ levels, closer to 52-week low support.
- Long-term holding: Cautious; suitable for investors seeking healthcare exposure, but fundamentals do not justify current premium valuation.
Positive
- Quarterly PAT improved (105 Cr vs 38 Cr).
- Strong brand presence in healthcare sector.
- DII holdings increased (+0.19 %).
Limitation
- Extremely high P/E ratio (340) compared to industry average (45.2).
- Weak ROE (1.41 %) and ROCE (3.27 %).
- EPS at 2.31 ₹ reflects poor profitability.
- Dividend yield at 0.12 % is negligible.
Company Negative News
- FII holdings decreased (-0.06 %).
- Technical indicators weak: RSI at 35.1, MACD negative.
- Stock corrected from 52-week high of 1,105 ₹.
Company Positive News
- Quarterly PAT improved significantly (105 Cr vs 38 Cr).
- Institutional support from DII investors.
Industry
- Healthcare sector resilient, driven by rising demand for private hospital services.
- Industry PE at 45.2, far lower than FORTIS’s valuation, highlighting overpricing.
Conclusion
- FORTIS shows strong brand presence but weak efficiency metrics and stretched valuation.
- Valuation is significantly higher than industry peers, limiting upside potential.
- Entry advisable only near lower support levels; long-term holding requires caution unless profitability improves substantially.
Would you like me to also prepare a comparative HTML snapshot against peers like Apollo Hospitals and Narayana Hrudayalaya to highlight FORTIS’s relative valuation and strengths?