FORTIS - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 2.9
| Stock Code | FORTIS | Market Cap | 67,240 Cr. | Current Price | 891 ₹ | High / Low | 1,105 ₹ |
| Stock P/E | 364 | Book Value | 122 ₹ | Dividend Yield | 0.12 % | ROCE | 3.27 % |
| ROE | 1.41 % | Face Value | 10.0 ₹ | DMA 50 | 930 ₹ | DMA 200 | 850 ₹ |
| Chg in FII Hold | 0.72 % | Chg in DII Hold | -0.65 % | PAT Qtr | 105 Cr. | PAT Prev Qtr | 38.0 Cr. |
| RSI | 33.5 | MACD | -27.2 | Volume | 18,72,425 | Avg Vol 1Wk | 16,34,892 |
| Low price | 521 ₹ | High price | 1,105 ₹ | PEG Ratio | 2.31 | Debt to equity | 0.22 |
| 52w Index | 63.3 % | Qtr Profit Var | 9.77 % | EPS | 2.31 ₹ | Industry PE | 51.8 |
📊 Financials Overview:
- Revenue & Profit Growth: PAT rose from 38 Cr. to 105 Cr. (↑ 176%), but overall earnings remain modest relative to market cap.
- Margins: ROCE at 3.27% and ROE at 1.41% are weak, showing poor capital efficiency.
- Debt Ratios: Debt-to-equity at 0.22 indicates manageable leverage.
- Cash Flows: Dividend yield at 0.12% is negligible, offering minimal shareholder returns.
💹 Valuation Indicators:
- P/E Ratio: 364 vs Industry PE of 51.8 → extremely overvalued.
- P/B Ratio: Current Price / Book Value ≈ 7.3, expensive relative to fundamentals.
- PEG Ratio: 2.31 → valuation stretched relative to growth.
- Intrinsic Value: Fair value estimated near 650–700 ₹; current price (891 ₹) trades at a steep premium.
🏥 Business Model & Competitive Advantage:
- Fortis Healthcare operates in hospitals and diagnostics, with strong brand recognition in India’s healthcare sector.
- Growing demand for healthcare services provides long-term opportunity.
- However, weak return metrics and stretched valuations limit competitive strength.
📈 Entry Zone & Long-Term Guidance:
- Entry Zone: Attractive accumulation range between 650–700 ₹.
- Long-Term Holding: High-risk investment; suitable only for investors betting on long-term healthcare demand.
Positive
- Quarterly PAT growth of 176% shows earnings momentum.
- FII holdings increased by 0.72%, reflecting foreign investor confidence.
- Strong brand presence in healthcare services.
Limitation
- Extremely high P/E ratio (364) compared to industry average (51.8).
- Weak ROE (1.41%) and ROCE (3.27%) indicate poor capital efficiency.
- Dividend yield at 0.12% is negligible.
- DII holdings declined by -0.65%, showing reduced domestic institutional confidence.
Company Negative News
- No major negative news reported; valuation premium and weak return metrics remain key concerns.
Company Positive News
- Quarterly PAT growth of 176% highlights operational improvement.
- FII holdings increased, showing foreign investor confidence.
Industry
- Industry PE at 51.8, far lower than Fortis’s 364.
- Healthcare sector growth driven by rising demand for hospital services and diagnostics in India.
Conclusion
⚖️ Fortis Healthcare shows strong short-term profit growth but suffers from weak return metrics and extreme overvaluation. While healthcare demand provides long-term opportunity, the stock trades at a steep premium compared to industry averages. Long-term investors should only consider entry near 650–700 ₹ for margin of safety, while current levels pose significant valuation risks despite sector demand.
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