FORTIS - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.2

📊 Core Financials Overview

Profitability

ROE: 1.41% and ROCE: 3.27% — very weak return metrics for a ₹73,000 Cr company.

EPS: ₹1.18 — low earnings base, especially given the high market cap.

PAT Qtr: ₹38 Cr vs ₹6.86 Cr — strong quarterly improvement, but still modest absolute profit.

Balance Sheet & Leverage

Debt-to-Equity: 0.22 — low leverage, which is a positive.

Book Value: ₹120 — implies a P/B ratio of ~8.1, which is expensive.

Dividend Yield: 0.10% — negligible for income-focused investors.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 416 Extremely overvalued vs industry PE of 57.3

PEG Ratio 2.64 Suggests expensive growth expectations

Intrinsic Value ~₹750–₹800 CMP is significantly above fair value

Valuation is stretched and not supported by earnings or return ratios.

🏥 Business Model & Competitive Edge

Sector: Private healthcare — hospitals, diagnostics, and specialty care.

Strengths

Operates a large network across India, UAE, Nepal, and Sri Lanka.

Recent O&M agreements with Ekana Group and Gleneagles Healthcare to expand footprint

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Strong brand recognition in Tier-1 cities.

Challenges

Weak ROE and ROCE despite scale.

High valuation multiples.

FII holding slightly down (-0.22%) — cautious institutional sentiment.

📉 Technicals & Entry Zone

Current Price: ₹967

DMA 50: ₹898 | DMA 200: ₹753 — bullish trend intact

RSI: 64.7 — nearing overbought zone

MACD: Positive — momentum strong

📌 Suggested Entry Zone: ₹850–₹880

A pullback near the 50 DMA would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold with caution: If already invested, monitor earnings growth and margin expansion.

Avoid fresh entry at CMP: Wait for valuation to cool or for return metrics to improve meaningfully.

Let me know if you'd like a peer comparison with Apollo Hospitals or Narayana Health.

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