⚠ 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.
NH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NH | Market Cap | 34,541 Cr. | Current Price | 1,688 ₹ | High / Low | 2,372 ₹ |
| Stock P/E | 69.9 | Book Value | 114 ₹ | Dividend Yield | 0.27 % | ROCE | 19.4 % |
| ROE | 21.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,788 ₹ | DMA 200 | 1,781 ₹ |
| Chg in FII Hold | 0.61 % | Chg in DII Hold | 0.15 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 138 Cr. |
| RSI | 39.5 | MACD | -39.2 | Volume | 2,20,135 | Avg Vol 1Wk | 3,59,806 |
| Low price | 1,380 ₹ | High price | 2,372 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.69 |
| 52w Index | 31.1 % | Qtr Profit Var | 37.1 % | EPS | 22.6 ₹ | Industry PE | 43.5 |
📊 Financials
- Revenue & Profitability: PAT declined from ₹138 Cr. to ₹109 Cr., showing earnings pressure. EPS at ₹22.6 is modest given valuation.
- Margins & Returns: ROCE (19.4%) and ROE (21.0%) are healthy, reflecting decent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.69 indicates moderate leverage, manageable but adds risk.
- Cash Flow: Stable due to profitability, though debt servicing remains a factor.
💹 Valuation
- P/E Ratio: 69.9 vs Industry PE of 43.5 → Overvalued compared to peers.
- P/B Ratio: ~14.8 (Price ₹1,688 / Book Value ₹114) → Expensive on book value basis.
- PEG Ratio: 1.51 → Growth moderately justifies valuation but still stretched.
- Intrinsic Value: Current price trades above fair value, limiting upside.
🏢 Business Model & Competitive Advantage
- NH operates in healthcare services, benefiting from rising demand and brand strength.
- Competitive advantage lies in scale, specialized offerings, and strong patient trust.
- Dividend yield of 0.27% is very low, reflecting reinvestment focus.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,450–1,550 range (closer to 52W low of ₹1,380 and below DMA levels).
- Long-Term Holding: Suitable for investors seeking exposure to healthcare growth, but accumulation should be cautious due to stretched valuations.
✅ Positive
- Strong ROE (21%) and ROCE (19.4%) indicate efficient capital use.
- Healthcare sector offers long-term growth potential.
- FII holdings increased (+0.61%), showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio (69.9) compared to industry average.
- Dividend yield is very low (0.27%).
- Debt-to-equity ratio of 0.69 adds financial risk.
📉 Company Negative News
- PAT dropped compared to previous quarter.
- MACD at -39.2 indicates bearish technical momentum.
📈 Company Positive News
- FII holdings increased (+0.61%), signaling global investor confidence.
- DII holdings increased (+0.15%), showing modest domestic support.
- RSI at 39.5 indicates oversold territory, potential for rebound.
🏭 Industry
- Healthcare industry benefits from rising demand, government initiatives, and demographic trends.
- Industry PE at 43.5 suggests peers trade at lower valuations, making NH relatively expensive.
🔎 Conclusion
- NH is fundamentally strong with decent efficiency and sectoral growth potential.
- However, high valuations, modest dividend yield, and earnings pressure limit upside potential.
- Best strategy: Accumulate near ₹1,450–1,550 range for long-term holding, while avoiding aggressive buying at current levels.