⚠ 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: 3.8
| Stock Code | MEDANTA | Market Cap | 28,160 Cr. | Current Price | 1,047 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 56.2 | Book Value | 141 ₹ | Dividend Yield | 0.05 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,126 ₹ | DMA 200 | 1,193 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 1.02 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 33.8 | MACD | -22.5 | Volume | 1,52,655 | Avg Vol 1Wk | 1,17,720 |
| Low price | 1,010 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.07 |
| 52w Index | 8.23 % | Qtr Profit Var | -18.4 % | EPS | 17.3 ₹ | Industry PE | 43.5 |
📊 Core Financials
- Quarterly PAT declined from ₹128 Cr. to ₹107 Cr., showing short-term weakness.
- ROCE at 19.6% and ROE at 15.2% → moderate efficiency.
- Debt-to-equity ratio of 0.07 → low leverage, nearly debt-free.
- Cash flows supported by hospital operations and healthcare demand.
💹 Valuation Indicators
- P/E Ratio: 56.2 vs Industry PE of 43.5 → trading at a premium.
- P/B Ratio: ~7.4x (₹1047 / ₹141) → high valuation relative to book value.
- PEG Ratio: 1.78 → moderately expensive relative to growth.
- Intrinsic Value: Current price above fair zone, reflecting optimism in healthcare sector.
🏢 Business Model & Competitive Advantage
- Multi-specialty hospital chain with strong brand recognition.
- Focus on premium healthcare services ensures steady demand.
- Expansion opportunities in India’s growing healthcare market.
📈 Technical & Entry Zone
- Current Price: ₹1047, below 50 DMA (₹1126) and 200 DMA (₹1193).
- RSI: 33.8 → oversold zone, potential rebound.
- MACD: -22.5 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹1000–₹1050.
- Long-Term Holding: Suitable for 3–5 year horizon given healthcare demand growth.
✅ Positive
- Low debt levels.
- Strong brand presence in healthcare.
- DII holdings increased by 1.02%, showing institutional confidence.
⚠️ Limitation
- High P/E and P/B ratios reflect expensive valuation.
- Quarterly profit decline (-18.4%) raises concerns.
📉 Company Negative News
- Decline in FII holdings (-0.87%).
- Stock corrected from 52-week high of ₹1456.
📈 Company Positive News
- Strong institutional support from DII investors.
- Healthcare sector tailwinds provide long-term growth opportunities.
🏭 Industry
- Healthcare sector supported by rising demand and government focus on medical infrastructure.
- Industry PE at 43.5 indicates investor optimism in healthcare services.
🔎 Conclusion
MEDANTA is a hospital chain with strong brand recognition and low debt, but currently trading at premium valuations.
Short-term earnings weakness and high multiples make it slightly risky, yet long-term healthcare demand supports growth.
Best accumulated around ₹1000–₹1050 for investors with a 3–5 year horizon.