⚠ 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.
KIMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | KIMS | Market Cap | 27,055 Cr. | Current Price | 677 ₹ | High / Low | 798 ₹ |
| Stock P/E | 96.6 | Book Value | 57.2 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 670 ₹ | DMA 200 | 665 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.60 % | PAT Qtr | 72.5 Cr. | PAT Prev Qtr | 63.7 Cr. |
| RSI | 48.6 | MACD | -1.78 | Volume | 7,34,565 | Avg Vol 1Wk | 3,88,985 |
| Low price | 528 ₹ | High price | 798 ₹ | PEG Ratio | 322 | Debt to equity | 0.46 |
| 52w Index | 55.0 % | Qtr Profit Var | -5.23 % | EPS | 7.20 ₹ | Industry PE | 43.5 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹63.7 Cr → ₹72.5 Cr), showing growth, though quarterly profit variation (-5.23%) indicates volatility. EPS at ₹7.20 reflects modest earnings capacity.
- Margins: ROCE at 16% and ROE at 14% highlight moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.46 indicates moderate leverage.
- Cash Flow: Operating performance is stable, though margins remain under pressure.
💹 Valuation Indicators
- P/E: 96.6, far above industry average (43.5), suggesting heavy premium valuation.
- P/B: 11.8 (₹677 / ₹57.2), reflecting high market expectations.
- PEG Ratio: 322, distorted due to earnings slowdown, making valuation unattractive.
- Intrinsic Value: Current price ₹677 is above fair value; better entry closer to ₹600–640.
🏢 Business Model & Competitive Advantage
- Strong presence in healthcare services with expanding hospital network.
- Growing demand for healthcare supports long-term growth prospects.
- Moderate debt levels provide leverage but require careful monitoring.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹600–640 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to healthcare growth, though valuation premium and modest profitability warrant caution.
✅ Positive
- Sequential PAT growth (+13.8%).
- ROCE (16%) and ROE (14%) highlight moderate efficiency.
- DII holdings increased by 0.60%, showing domestic institutional confidence.
⚠️ Limitation
- Quarterly profit variation (-5.23%) indicates earnings volatility.
- High P/E (96.6) compared to industry average (43.5).
- High P/B ratio reflects premium valuation.
- PEG ratio (322) suggests distorted valuation due to earnings slowdown.
📉 Company Negative News
- FII holdings decreased by 0.70%, showing reduced foreign investor confidence.
- Technical indicators (MACD -1.78) suggest weak momentum.
📈 Company Positive News
- Sequential PAT growth from ₹63.7 Cr to ₹72.5 Cr.
- DII holdings increased by 0.60%, reflecting strong domestic institutional support.
- RSI at 48.6 indicates neutral momentum, avoiding overbought/oversold extremes.
🏭 Industry
- Industry P/E at 43.5, much lower than company’s P/E, indicating premium valuation.
- Healthcare sector remains resilient with strong demand for medical services and hospital expansion.
🔎 Conclusion
- KIMS demonstrates moderate fundamentals with steady growth but faces valuation challenges.
- High P/E and distorted PEG ratio make current levels less attractive.
- Entry zone between ₹600–640 is favorable for long-term investors.
- Overall, a fundamentally stable company with healthcare growth prospects, though short-term volatility and premium valuation warrant caution.