FORTIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | FORTIS | Market Cap | 69,679 Cr. | Current Price | 923 ₹ | High / Low | 1,105 ₹ |
| Stock P/E | 400 | Book Value | 122 ₹ | Dividend Yield | 0.11 % | ROCE | 3.27 % |
| ROE | 1.41 % | Face Value | 10.0 ₹ | DMA 50 | 882 ₹ | DMA 200 | 867 ₹ |
| Chg in FII Hold | -1.86 % | Chg in DII Hold | 2.02 % | PAT Qtr | 24.7 Cr. | PAT Prev Qtr | 105 Cr. |
| RSI | 60.8 | MACD | 23.9 | Volume | 10,77,160 | Avg Vol 1Wk | 12,71,068 |
| Low price | 623 ₹ | High price | 1,105 ₹ | PEG Ratio | 2.54 | Debt to equity | 0.22 |
| 52w Index | 62.2 % | Qtr Profit Var | -30.0 % | EPS | 2.16 ₹ | Industry PE | 47.1 |
Financials & Valuation:
FORTIS shows weak fundamentals. ROCE (3.27%) and ROE (1.41%) reflect poor efficiency. EPS of 2.16 ₹ is very low relative to valuation, and quarterly PAT collapsed to 24.7 Cr. from 105 Cr., highlighting severe earnings volatility. Debt-to-equity at 0.22 is manageable, but profitability remains weak.
Valuation Indicators:
P/E ratio of 400 is drastically higher than the industry average (47.1), indicating extreme overvaluation. Book Value of 122 ₹ compared to current price of 923 ₹ shows steep premium pricing. PEG ratio of 2.54 suggests stretched valuation relative to growth. Dividend yield of 0.11% provides negligible income support.
Business Model & Health:
FORTIS, a healthcare provider, benefits from strong demand in hospital and medical services. However, profitability metrics remain weak, and valuations are disconnected from fundamentals. Institutional sentiment is mixed, with FII holdings declining (-1.86%) and DII holdings increasing (+2.02%).
Entry Zone & Holding Guidance:
Technically, support lies around 880–900 ₹, with resistance near 950–970 ₹. Entry should only be considered for speculative trades near support levels. Long-term holding is not advisable until profitability stabilizes and valuations normalize.
Positive
- DII holdings increased (+2.02%), showing domestic confidence.
- Debt-to-equity remains low at 0.22.
- Technical momentum (MACD 23.9, RSI 60.8) shows short-term bullish bias.
Limitation
- Extremely high P/E (400) vs industry average (47.1).
- Weak ROCE (3.27%) and ROE (1.41%).
- EPS of 2.16 ₹ is negligible.
- PAT collapsed from 105 Cr. to 24.7 Cr.
- Dividend yield of 0.11% offers no support.
Company Negative News
- Sharp decline in quarterly PAT.
- Reduction in FII holdings (-1.86%).
- Severe overvaluation compared to peers.
Company Positive News
- DII holdings increased, reflecting domestic institutional support.
- Technical indicators show short-term bullish momentum.
Industry
- Healthcare sector benefits from consistent demand and expansion.
- Industry PE (47.1) is far lower than FORTIS’s, highlighting overvaluation.
- Long-term growth supported by rising healthcare demand, but profitability efficiency lags peers.
Conclusion
FORTIS is fundamentally weak with poor profitability and extreme overvaluation. Entry near 880–900 ₹ may be considered only for speculative trades with strict stop-losses. Long-term investors should avoid until earnings stabilize and valuations normalize.
Would you like me to extend this into a peer benchmarking overlay comparing FORTIS against Apollo Hospitals, Max Healthcare, and Narayana Hrudayalaya to highlight relative positioning in profitability and valuation?