KIMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | KIMS | Market Cap | 26,677 Cr. | Current Price | 667 ₹ | High / Low | 798 ₹ |
| Stock P/E | 95.2 | Book Value | 57.2 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 662 ₹ | DMA 200 | 663 ₹ |
| Chg in FII Hold | 0.24 % | Chg in DII Hold | -0.22 % | PAT Qtr | 72.5 Cr. | PAT Prev Qtr | 63.7 Cr. |
| RSI | 51.5 | MACD | 2.00 | Volume | 2,31,883 | Avg Vol 1Wk | 4,33,908 |
| Low price | 576 ₹ | High price | 798 ₹ | PEG Ratio | 317 | Debt to equity | 0.46 |
| 52w Index | 40.9 % | Qtr Profit Var | -5.23 % | EPS | 7.20 ₹ | Industry PE | 47.1 |
Entry Zone: 640 ₹ – 670 ₹ (near 50 & 200 DMA support)
Exit Guidance: 720 ₹ – 740 ₹ (resistance zone)
Holding View: Medium-term cautious holding with valuation risk
Positive
- ROCE (16%) and ROE (14%) show moderate efficiency
- Low debt-to-equity ratio (0.46) indicates manageable leverage
- EPS of 7.20 ₹ provides earnings base
- Quarterly PAT growth (63.7 Cr → 72.5 Cr) shows operational strength
- FII holdings increased (+0.24%), signaling foreign investor confidence
Limitation
- Extremely high P/E of 95.2 compared to industry PE of 47.1 — severe overvaluation
- PEG ratio of 317 indicates unsustainable valuation relative to growth
- Dividend yield of 0.00% offers no income appeal
- Volume (2,31,883) below weekly average (4,33,908) shows weak participation
- DII holdings decreased (-0.22%), showing reduced domestic institutional support
Company Negative News
- Sequential profit variation (-5.23%) raises earnings consistency concerns
- Valuation premium relative to peers limits upside potential
Company Positive News
- Quarterly profit growth supports investor sentiment
- Foreign institutional accumulation provides confidence
- Technical indicators (RSI 51.5, MACD 2.00) show neutral momentum
Industry
- Industry PE at 47.1, much lower than KIMS’s 95.2 — sector valuations more moderate
- Sector momentum steady with 52-week index return of 40.9%
Conclusion
KIMS Hospitals demonstrates moderate fundamentals with manageable leverage and profit growth, but faces extreme valuation risks due to its very high P/E and unsustainable PEG ratio. Entry near 640–670 ₹ offers a defensive positioning, with exits around 720–740 ₹ advisable. Long-term holding requires cautious monitoring of earnings consistency and valuation levels, as stretched multiples may limit upside potential.
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