KIMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | KIMS | Market Cap | 23,754 Cr. | Current Price | 594 ₹ | High / Low | 798 ₹ |
| Stock P/E | 83.6 | Book Value | 57.2 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 638 ₹ | DMA 200 | 659 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.60 % | PAT Qtr | 63.7 Cr. | PAT Prev Qtr | 58.8 Cr. |
| RSI | 39.8 | MACD | -11.5 | Volume | 2,10,272 | Avg Vol 1Wk | 4,95,652 |
| Low price | 474 ₹ | High price | 798 ₹ | PEG Ratio | 279 | Debt to equity | 0.46 |
| 52w Index | 36.8 % | Qtr Profit Var | -11.8 % | EPS | 7.30 ₹ | Industry PE | 45.2 |
📊 Financials: KIMS shows moderate fundamentals with ROCE at 16.0% and ROE at 14.0%, reflecting average capital efficiency. Debt-to-equity ratio of 0.46 indicates moderate leverage, requiring monitoring. Quarterly PAT improved slightly from 58.8 Cr. to 63.7 Cr., but profit variation (-11.8%) highlights earnings pressure. Cash flows remain steady, supported by healthcare demand, though margins are under strain.
💹 Valuation: Current P/E of 83.6 is significantly higher than industry average (45.2), suggesting premium valuation. P/B ratio (~10.4) is elevated, while PEG ratio of 279 indicates weak growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 560–580 ₹, offering margin of safety compared to current price (594 ₹).
🏢 Business Model & Advantage: KIMS operates in healthcare services with a network of hospitals across India. Its competitive advantage lies in scale, brand recognition, and diversified medical offerings. Market cap of 23,754 Cr. positions it as a mid-cap healthcare player with resilience, though profitability growth remains modest.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 560–580 ₹. Long-term investors may hold cautiously given strong sector demand and institutional support, but premium valuation and weak growth-adjusted metrics warrant careful monitoring. Technical indicators (RSI 39.8, MACD negative) show near-term weakness.
Positive
- ROCE (16.0%) and ROE (14.0%) reflect stable efficiency.
- Debt-to-equity ratio of 0.46 is manageable.
- DII holding increased (+0.60%), showing domestic institutional confidence.
- Strong presence in healthcare with diversified hospital network.
Limitation
- High P/E (83.6) compared to industry average (45.2) suggests overvaluation.
- Elevated P/B ratio (~10.4) indicates expensive price relative to book value.
- PEG ratio (279) reflects poor growth-adjusted valuation.
- Quarterly PAT variation (-11.8%) highlights earnings pressure.
- Dividend yield of 0.00% limits income appeal.
Company Negative News
- Decline in FII holding (-0.70%) reflects reduced foreign investor confidence.
- Weak technical indicators (RSI 39.8, MACD -11.5) show bearish momentum.
Company Positive News
- DII inflows (+0.60%) show strong domestic institutional support.
- Quarterly PAT growth from 58.8 Cr. to 63.7 Cr. highlights earnings consistency despite margin pressure.
Industry
- Industry P/E at 45.2 indicates growth-oriented sector.
- Healthcare demand remains resilient with long-term growth potential.
- Companies with scale and diversified medical offerings hold competitive advantage.
Conclusion
⚖️ KIMS demonstrates moderate fundamentals with stable return metrics and manageable debt. However, premium valuation, weak PEG ratio, and profit variation temper the outlook. Entry around 560–580 ₹ is recommended for long-term investors, with cautious monitoring of profitability and sector trends.