⚠ 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 | 63,685 Cr. | Current Price | 844 ₹ | High / Low | 1,105 ₹ |
| Stock P/E | 365 | Book Value | 122 ₹ | Dividend Yield | 0.12 % | ROCE | 3.27 % |
| ROE | 1.41 % | Face Value | 10.0 ₹ | DMA 50 | 890 ₹ | DMA 200 | 868 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.19 % | PAT Qtr | 24.7 Cr. | PAT Prev Qtr | 105 Cr. |
| RSI | 41.1 | MACD | -16.9 | Volume | 22,45,995 | Avg Vol 1Wk | 20,60,289 |
| Low price | 521 ₹ | High price | 1,105 ₹ | PEG Ratio | 2.32 | Debt to equity | 0.22 |
| 52w Index | 55.2 % | Qtr Profit Var | -30.0 % | EPS | 2.16 ₹ | Industry PE | 43.5 |
📊 Core Financials
- Revenue growth: PAT dropped sharply to 24.7 Cr. from 105 Cr., showing weak performance
- Profit margins: EPS at 2.16 ₹, ROE 1.41%, ROCE 3.27% — very poor efficiency
- Debt ratios: Debt-to-equity at 0.22, manageable but not debt-free
- Cash flows: Weak profitability raises sustainability concerns
- Return metrics: ROE and ROCE well below industry averages
💹 Valuation Indicators
- P/E Ratio: 365, extremely overvalued compared to industry PE of 43.5
- P/B Ratio: ~6.9 (844 ₹ / 122 ₹), high relative to fundamentals
- PEG Ratio: 2.32, suggests valuation stretched relative to growth
- Intrinsic Value: Current price appears far above fair value given weak returns
🏢 Business Model & Competitive Advantage
- Operates in healthcare and hospital services sector
- Competitive advantage through established hospital network and brand recognition
- Industry demand supported by rising healthcare needs, but company-specific profitability is weak
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 750–780 ₹ range if fundamentals improve
- Long-Term Holding: Not recommended until earnings stabilize and valuation aligns with industry norms
✅ Positive
- Strong market capitalization at 63,685 Cr. provides scale advantage
- DII holding increased (+0.19%)
- Stock trading close to DMA 200 (868 ₹), showing some technical support
⚠️ Limitation
- Extremely high P/E ratio (365) compared to industry average
- ROE (1.41%) and ROCE (3.27%) are very weak
- Quarterly profit variation (-30%) indicates earnings volatility
📰 Company Negative News
- PAT dropped to 24.7 Cr. from 105 Cr.
- FII holding decreased (-0.06%)
- MACD at -16.9 indicates bearish sentiment
🌟 Company Positive News
- DII holding increased (+0.19%)
- RSI at 41.1 indicates mildly oversold conditions, potential for rebound
- Stock price recovered from 52-week low of 521 ₹
🏭 Industry
- Industry PE at 43.5, FORTIS trades at a steep premium
- Sector benefits from rising healthcare demand and government support, but company-specific fundamentals are weak
🔎 Conclusion
- FORTIS shows weak fundamentals with declining profitability, low efficiency, and extreme overvaluation
- Valuation is stretched compared to industry peers, limiting near-term upside
- Not suitable for long-term holding unless earnings improve significantly; entry only near 750–780 ₹ with cautious optimism