⚠ 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.
MEDANTA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | MEDANTA | Market Cap | 30,072 Cr. | Current Price | 1,120 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 57.3 | Book Value | 141 ₹ | Dividend Yield | 0.04 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,160 ₹ | DMA 200 | 1,220 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 1.02 % | PAT Qtr | 128 Cr. | PAT Prev Qtr | 137 Cr. |
| RSI | 49.6 | MACD | -34.6 | Volume | 7,59,275 | Avg Vol 1Wk | 3,10,119 |
| Low price | 1,010 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.07 |
| 52w Index | 24.7 % | Qtr Profit Var | 22.6 % | EPS | 19.2 ₹ | Industry PE | 45.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT declined slightly from 137 Cr. to 128 Cr., though YoY profit variation stands at 22.6%, showing resilience.
- Margins: ROE at 15.2% and ROCE at 19.6% indicate moderate profitability, healthy for a hospital chain but below top-tier benchmarks.
- Debt Ratios: Debt-to-equity at 0.07 reflects a low-leverage balance sheet.
- Cash Flows: Stable operating cash flows supported by healthcare services and hospital operations.
- Return Metrics: EPS at 19.2 ₹ highlights steady earnings, though not very high relative to valuation.
💹 Valuation Indicators
- P/E Ratio: 57.3, significantly above industry PE of 45.2, suggesting premium valuation.
- P/B Ratio: ~7.9 (Current Price / Book Value), reflecting expensive valuation relative to assets.
- PEG Ratio: 1.81, indicating growth is priced at a premium.
- Intrinsic Value: Current price (1,120 ₹) is slightly overvalued; better entry opportunities may arise near support levels.
🏢 Business Model & Competitive Advantage
- Operates as a leading hospital chain with strong brand recognition in healthcare services.
- Competitive advantage lies in specialized medical expertise, infrastructure, and growing patient base.
- Resilient business model with steady demand for healthcare, though margins are sensitive to operating costs.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,050 ₹ – 1,100 ₹ (near 52-week low and DMA 200).
- Long-Term Holding: Suitable for long-term investors seeking exposure to healthcare growth, though valuations are stretched.
Positive
- Low debt-to-equity ratio.
- Strong brand presence in healthcare services.
- Consistent YoY profit growth despite quarterly dip.
- Healthy domestic institutional inflows (+1.02%).
Limitation
- High P/E and P/B ratios indicate expensive valuation.
- Dividend yield at 0.04% is negligible.
- Quarterly PAT decline signals short-term pressure.
Company Negative News
- Reduction in FII holdings (-0.87%) shows cautious foreign investor sentiment.
Company Positive News
- Strong YoY profit growth and rising DII inflows.
- Expansion in healthcare services and infrastructure strengthening brand equity.
Industry
- Healthcare sector remains resilient with rising demand for hospital services.
- Industry PE at 45.2 reflects investor optimism and premium valuations.
Conclusion
- Medanta is a fundamentally stable healthcare provider with moderate profitability and strong brand presence.
- Valuation is premium, limiting near-term upside.
- Best suited for long-term investors seeking defensive exposure to healthcare, with entry near support levels for better risk-reward.
I can also compare Medanta’s valuation and profitability with peers like Apollo Hospitals or Narayana Hrudayalaya to highlight relative positioning in the healthcare sector.