MEDANTA - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 4.2

📊 Core Financials Breakdown

Profitability

ROE: 15.2% and ROCE: 19.6% — strong returns, especially for a capital-intensive hospital business.

EPS: ₹17.9 — decent earnings base, with PAT growing 42.2% YoY.

PAT Qtr: ₹137 Cr vs ₹129 Cr — consistent profitability with upward momentum.

Balance Sheet & Leverage

Debt-to-Equity: 0.10 — low leverage, enhancing financial stability.

Book Value: ₹130 — implies a P/B ratio of ~10.6, which is high but reflects premium positioning.

Dividend Yield: 0.04% — negligible, indicating reinvestment focus.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 73.5 Significantly above industry average (57.3) — priced for growth

PEG Ratio 2.33 Expensive relative to earnings growth

Intrinsic Value ~₹1,250–₹1,300 CMP slightly above fair value zone

Valuation is stretched, but supported by strong growth and operational efficiency.

🏥 Business Model & Competitive Edge

Sector: Healthcare — multi-specialty hospitals and pathology services.

Strengths

Operates under the Medanta brand with flagship hospitals in Gurugram, Lucknow, Patna, Indore, and Ranchi.

Recent expansion includes a new 110-bed hospital in Ranchi and a proposed 750-bed facility in New Delhi

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High ROCE and ROE reflect efficient asset utilization and strong demand.

DII holding up (+0.27%) — positive domestic sentiment.

Challenges

FII holding slightly down (-0.22%) — cautious foreign sentiment.

PEG ratio suggests growth expectations may be overbaked.

Dividend yield remains low, limiting passive income appeal.

📉 Technicals & Entry Zone

Current Price: ₹1,373

DMA 50: ₹1,341 | DMA 200: ₹1,238 — bullish trend intact

RSI: 50.6 — neutral zone

MACD: Slightly positive — momentum stabilizing

📌 Suggested Entry Zone: ₹1,300–₹1,340

A dip near the 50 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, low debt, and strategic expansion make Medanta a high-quality long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s premium healthcare infrastructure and rising medical demand.

You can explore Medanta’s financials and technical chart on TradingView or review brokerage targets and analyst sentiment on Trendlyne

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

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stockanalysis.com

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in.tradingview.com

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trendlyne.com

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