NH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | NH | Market Cap | 36,102 Cr. | Current Price | 1,767 ₹ | High / Low | 2,372 ₹ |
| Stock P/E | 73.1 | Book Value | 114 ₹ | Dividend Yield | 0.25 % | ROCE | 19.4 % |
| ROE | 21.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,758 ₹ | DMA 200 | 1,769 ₹ |
| Chg in FII Hold | -1.12 % | Chg in DII Hold | 1.23 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 138 Cr. |
| RSI | 52.0 | MACD | 15.4 | Volume | 1,77,813 | Avg Vol 1Wk | 2,16,300 |
| Low price | 1,564 ₹ | High price | 2,372 ₹ | PEG Ratio | 1.58 | Debt to equity | 0.69 |
| 52w Index | 25.1 % | Qtr Profit Var | 37.1 % | EPS | 22.6 ₹ | Industry PE | 47.1 |
📊 Financials: NH shows strong efficiency with ROE at 21.0% and ROCE at 19.4%. EPS is healthy at ₹22.6, though quarterly PAT declined (₹109 Cr vs ₹138 Cr), reflecting earnings pressure. Debt-to-equity ratio of 0.69 is moderate, manageable but worth monitoring. Dividend yield of 0.25% is low, offering limited income support.
💹 Valuation: The stock trades at a P/E of 73.1, significantly above the industry average of 47.1, suggesting premium valuation. PEG ratio of 1.58 indicates moderate growth alignment but not deeply attractive. Book value of ₹114 provides intrinsic support, though valuation multiples remain stretched.
🏭 Business Model: NH operates in healthcare services, with strengths in operational efficiency and brand positioning. Its competitive advantage lies in scale, patient trust, and institutional support. However, earnings volatility and high valuation limit near-term attractiveness.
📈 Entry Zone: Attractive entry would be near ₹1,700–₹1,730, aligning with support levels and fairer valuation. Current price (₹1,767) is near both 50 DMA (₹1,758) and 200 DMA (₹1,769), suggesting consolidation. Long-term investors may accumulate cautiously, focusing on sustained earnings growth.
Positive
- Strong ROE (21.0%) and ROCE (19.4%).
- EPS of ₹22.6 reflects solid earnings base.
- DII holdings increased (+1.23%), showing domestic institutional confidence.
- Moderate debt-to-equity ratio (0.69).
Limitation
- High P/E (73.1) vs industry average (47.1).
- Dividend yield of 0.25% is low.
- Quarterly PAT declined (₹109 Cr vs ₹138 Cr).
- FII holdings decreased (-1.12%), showing reduced foreign confidence.
Company Negative News
- Decline in quarterly profits.
- Reduced foreign investor confidence with FII outflows.
Company Positive News
- DII inflows (+1.23%) show strong domestic support.
- Strong efficiency metrics with ROE and ROCE above industry averages.
Industry
- Healthcare sector remains resilient with long-term demand growth.
- Industry P/E at 47.1 highlights NH’s premium valuation.
- Regulatory and operational risks affect profitability.
Conclusion
⚖️ NH demonstrates strong efficiency and earnings base but trades at stretched valuations. Entry is favorable near ₹1,700–₹1,730 for long-term investors. Current levels suggest cautious accumulation, with better opportunities on dips. Holding is viable if earnings growth sustains, but valuation risks remain elevated.