KIMS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a detailed analysis of Krishna Institute of Medical Sciences Ltd (KIMS)

📊 Core Financials

Profitability

EPS of ₹9.61 is modest, but quarterly PAT rose from ₹88.7 Cr to ₹94.2 Cr — a 6.2% sequential growth and 43.8% YoY jump, showing strong momentum.

ROE at 19.0% and ROCE at 15.1% — solid efficiency metrics for a healthcare provider.

Debt & Liquidity

Debt-to-equity ratio of 1.20 — relatively high, which could pressure margins and limit expansion flexibility.

No dividend payout — suggests reinvestment focus.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 79.6 Well above industry average (69.2) — signals overvaluation

P/B Ratio ~14.0 Based on Book Value ₹53.4 — rich valuation

PEG Ratio 19.6 Extremely high — growth not justifying premium

Intrinsic Value ₹620–₹660 (est.) Current price is ~15–20% above fair value zone

🧠 Business Model & Competitive Edge

Model: Multi-specialty hospital chain with strong presence in South India.

Strengths

High-margin specialties like oncology, cardiac sciences, and neurosciences

Strong brand and operational efficiency

Challenges

High valuation and debt levels

DII holding declined (-0.30%) — some institutional caution

📉 Technical & Sentiment Indicators

RSI at 58.2 — neutral zone, no strong momentum

MACD positive at 25.1 — bullish crossover

DMA50 and DMA200 below current price — trend is upward

Volume below average — subdued trading interest

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹705–₹725 — near DMA50 and support levels

Stop Loss: ₹675 (daily close)

Targets: ₹780 short-term, ₹820 medium-term

Long-Term Holding: Viable for growth-focused investors. Strong fundamentals and healthcare tailwinds support a 3–5 year horizon, but valuation and debt should be monitored.

Want to compare KIMS with Narayana Health or Apollo Hospitals to see how it stacks up in the healthcare space? I can pull that up for you.

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