KIMS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

🧾 Core Financials & Profitability

Earnings & Growth: Quarterly PAT declined from ₹85.1 Cr to ₹58.8 Cr, but the YoY trend remains positive. EPS of ₹7.52 is modest for a ₹741 stock, though analysts expect earnings to grow at 28% annually over the next three years

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Return Metrics

ROE: 14.0% and ROCE: 16.0% — solid, indicating efficient capital deployment.

Debt Profile: Debt-to-equity at 0.33 — moderate and manageable for a hospital chain.

Dividend Yield: 0.00% — no payouts, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 101 Extremely high vs. industry PE of 57.3 — richly valued.

P/B Ratio ~13.7 Expensive relative to book value ₹54.2.

PEG Ratio 338 Highly inflated — suggests valuation far exceeds earnings growth.

🔍 Conclusion: Valuation is stretched. Investors are pricing in aggressive future growth, but current fundamentals don’t fully justify the premium.

🏥 Business Model & Competitive Edge

Core Operations: Krishna Institute of Medical Sciences (KIMS) operates a chain of multi-specialty hospitals, primarily in South India.

Strategic Strengths

Strong brand in Tier 2/3 cities with scalable asset-light expansion.

EPS has grown 20% over three years, with a 19% gain in the last year

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Analysts expect continued outperformance vs. broader market growth

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Growth Outlook

SEBI-registered analysts are bullish, citing a strong uptrend and technical support near ₹700–₹720

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Price target of ₹870 in the next 2–3 months is considered achievable

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📉 Technicals & Entry Zone

RSI: 48.0 — neutral, offering buying comfort.

MACD: 3.08 — mild bullish signal.

DMA Levels: Price above both 50-DMA and 200-DMA — trend strength confirmed.

📌 Suggested Entry Zone: ₹700–₹720 — near technical support and EMA levels

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🕰️ Long-Term Holding Guidance

Hold if Invested: Strong growth outlook and sector tailwinds support long-term compounding.

Buy on Dips: Prefer entry near ₹710, with stop-loss below ₹615

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Monitor: Margin trends, hospital occupancy rates, and expansion plans.

You can explore Stocktwits’ September smallcap picks featuring KIMS

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or Simply Wall St’s valuation breakdown and growth forecast

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for deeper insights. Let me know if you'd like a peer comparison with Narayana Health or Apollo Hospitals next.

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simplywall.st

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stocktwits.com

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