NH - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 4.3

📊 Core Financials Overview

Profitability

PAT dipped from ₹160 Cr to ₹87.4 Cr — a 1.11% quarterly variation, indicating stabilization after a strong prior quarter.

EPS: ₹21.1 — solid, supporting long-term valuation.

Return Metrics

ROCE: 19.4% and ROE: 21.0% — both strong, reflecting efficient capital deployment and shareholder value creation.

Debt Profile

Debt-to-equity: 0.73 — moderate leverage, typical for hospital chains investing in expansion.

Cash Flow: Not explicitly stated, but consistent profitability and asset-light growth suggest healthy operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 84.6 Richly valued vs. industry average of 57.3 — reflects premium positioning.

P/B Ratio ~16.7 Elevated — justified by strong ROE and brand equity.

PEG Ratio 1.83 Fair — valuation aligned with growth expectations.

Intrinsic Value Estimated near ₹1,600–₹1,650 Current price slightly above fair value — not deeply undervalued.

🧠 Business Model & Competitive Advantage

Narayana Hrudayalaya Ltd. (NH) is a leading healthcare provider with a differentiated model

Core Operations

Offers multi-specialty services across India and the Cayman Islands, including cardiac surgery, oncology, neurology, and transplant services

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Asset-Light Expansion

Focus on emerging cities and strategic partnerships — reduces capex burden while scaling reach

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Integrated Care Ecosystem

Diversifying into insurance-linked services, oncology, and digital health — aiming for stable, less cyclical revenue streams

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Operational Efficiency

Investments in digitalization and high-margin procedures — boosting scalability and margin expansion

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Global Presence

Cayman Islands facility contributes to international revenue and brand visibility.

Its competitive edge lies in cost-effective care, scalable asset-light growth, and strategic diversification, positioning it as a premium healthcare play with long-term potential.

📈 Technical & Sentiment Signals

RSI: 47.7 — neutral zone, no strong momentum.

MACD: Negative — mild bearish crossover.

Volume: Below average — suggests consolidation.

DMA 50/200: Price hovering near both — trend indecisive but stable.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹1,650–₹1,720 — near DMA levels and below recent highs.

Long-Term View: NH is a high-quality healthcare stock with strong fundamentals, moderate debt, and a differentiated growth strategy. Suitable for long-term holding, especially for investors seeking exposure to India’s healthcare consumption boom. Dividend yield of 0.25% is modest, so returns will be driven primarily by capital appreciation.

You can explore NH’s stock analysis and financial ratios or its strategic positioning breakdown for deeper insights. Let me know if you'd like a comparison with Apollo Hospitals or Max Healthcare.

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