MEDANTA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

📊 Core Financials & Efficiency Metrics

EPS (₹17.9) with Quarterly PAT of ₹137 Cr vs ₹143 Cr: Slight decline, but still reflects steady performance.

ROCE (19.5%) & ROE (16.5%): Strong returns—indicative of robust asset utilization and shareholder value generation.

Debt-to-Equity (0.21): Financially sound—some leverage, but manageable for capital-intensive healthcare infrastructure.

Dividend Yield (0.00%): No payouts—capital is likely being reinvested into expansion, technology, or capacity.

💰 Valuation Metrics Snapshot

Metric Value Interpretation

P/E Ratio 69.2 Matches industry average—priced for growth

P/B Ratio ~10.56 High—reflects premium valuation for its assets

PEG Ratio 1.81 Fair—growth expectations reasonably priced

Intrinsic Value — Estimated ~₹1,150–₹1,250 — modest overvaluation

🔍 Trading slightly above intrinsic range. Market seems to expect consistent execution and future expansion.

🏥 Business Model & Competitive Advantage

Specialization: Multi-specialty hospital chain with tertiary care—cardiology, neurology, oncology, and more.

Strengths

Brand positioning in premium healthcare segment.

Scalable operating model with focus on metro and tier-1 cities.

Increasing DII interest (+0.27%) shows institutional confidence.

Risks

Rising costs and regulatory challenges in hospital operations.

Negative change in FII (-0.22%) may signal global macro concerns or valuation discomfort.

📈 Technical & Entry Zone Analysis

Current Price: ₹1,331

DMA 50 / 200: ₹1,246 / ₹1,183 — bullish medium-term trend

RSI (62.9): Slightly elevated—momentum is intact but not overheated

MACD (36.3): Positive—trend continuation possible

Volume: Slight dip—could be early signs of consolidation

🛒 Suggested Entry Zone: ₹1,200–₹1,280 Ideal to wait for a short-term dip. RSI below 55 and price nearing DMA 50 would enhance risk-reward appeal.

🧭 Long-Term Holding Perspective

MEDANTA stands out for its differentiated care model and brand credibility. Long-term conviction builds on

Expansion into underserved markets

Operational efficiency—maintaining ROCE/ROE >18%

Technology adoption in patient care (robotics, AI diagnostics)

Balance sheet stability with low gearing

If it maintains its margins and patient throughput, this stock could be your ticket to compounding in the healthcare space—provided you enter at a reasonable valuation.

Want to compare this with Apollo Hospitals, Narayana Health, or Fortis? I can build a diagnostic matrix that’ll make allocation decisions clinically precise. 🏥📊 Shall I prep the scalpel?

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