⚠ 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
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.5
📊 Financial Overview
- Profitability: PAT declined from ₹85.1 Cr to ₹58.8 Cr QoQ, with EPS at ₹7.52 and a negative profit variation of -3.13%.
- Return Metrics: ROE at 14.0% and ROCE at 16.0% reflect healthy operational efficiency.
- Valuation: P/E of 99.0 is significantly above the industry average (59.6), indicating steep overvaluation.
- P/B Ratio: With a book value of ₹54.2 and price of ₹724, P/B is ~13.4, suggesting a high valuation multiple.
- PEG Ratio: 330 is extremely high, signaling valuation misalignment with earnings growth.
- Debt Profile: Debt-to-equity ratio of 0.33 is moderate and manageable.
- Momentum: RSI at 52.7 and MACD at 0.22 indicate neutral sentiment with slight bullish bias.
🏢 Business Model & Competitive Edge
- KIMS (Krishna Institute of Medical Sciences) operates a chain of multi-specialty hospitals across South India.
- Its focus on Tier 2 and Tier 3 cities provides cost advantages and access to underserved markets.
- Asset-light expansion and operational efficiency support long-term scalability and margin stability.
💡 Entry Zone Recommendation
- Current price is at DMA 50 (₹724) and above DMA 200 (₹671), indicating consolidation.
- Suggested Entry Zone: ₹690–₹715 for accumulation on dips.
- Long-term holding is viable if earnings growth resumes and valuation moderates.
✅ Positive
- Strong ROE and ROCE indicate efficient capital deployment.
- Low debt-to-equity ratio enhances financial stability.
- DII holdings increased by 0.47%, reflecting growing domestic institutional confidence.
⚠️ Limitation
- Extremely high P/E and PEG ratios suggest valuation concerns.
- QoQ PAT decline may reflect operational or seasonal pressures.
- Zero dividend yield may not appeal to income-focused investors.
📉 Company Negative News
- FII holdings declined by 0.51%, indicating cautious foreign sentiment.
- Trading volume significantly below weekly average, suggesting reduced investor activity.
📈 Company Positive News
- Strong brand presence in South India and continued expansion in underserved regions.
- Stable EPS and consistent operational margins despite short-term profit dip.
🏭 Industry
- Healthcare sector benefits from rising demand, medical tourism, and increasing insurance penetration.
- Industry P/E of 59.6 supports moderate valuation for growth-oriented hospital chains.
🧾 Conclusion
- KIMS is a fundamentally sound healthcare provider with strong regional presence and operational efficiency.
- Entry near ₹690–₹715 offers a reasonable long-term opportunity, though valuation remains a concern.
- Monitor earnings trajectory and institutional flows for sustained performance.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks