⚠ 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 | 36,825 Cr. | Current Price | 1,802 ₹ | High / Low | 2,372 ₹ |
| Stock P/E | 79.3 | Book Value | 114 ₹ | Dividend Yield | 0.25 % | ROCE | 19.4 % |
| ROE | 21.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,850 ₹ | DMA 200 | 1,783 ₹ |
| Chg in FII Hold | 0.61 % | Chg in DII Hold | 0.15 % | PAT Qtr | 138 Cr. | PAT Prev Qtr | 87.4 Cr. |
| RSI | 45.4 | MACD | -34.6 | Volume | 1,83,215 | Avg Vol 1Wk | 3,11,306 |
| Low price | 1,296 ₹ | High price | 2,372 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.69 |
| 52w Index | 47.0 % | Qtr Profit Var | 30.6 % | EPS | 22.7 ₹ | Industry PE | 45.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 87.4 Cr. to 138 Cr. (+30.6%), showing strong earnings momentum. EPS at 22.7 ₹ reflects decent profitability.
- Margins: ROCE at 19.4% and ROE at 21.0% highlight good efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.69 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Dividend yield of 0.25% is very modest, suggesting reinvestment focus rather than strong shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 79.3 vs Industry PE of 45.2 → Significantly overvalued compared to peers.
- P/B Ratio: Current Price (1,802 ₹) / Book Value (114 ₹) ≈ 15.8 → Very high, signals premium valuation.
- PEG Ratio: 1.71 → Fair but leaning expensive relative to growth.
- Intrinsic Value: Current price trades above fair value zone, limiting near-term upside.
🏭 Business Model & Competitive Advantage
- NH operates in healthcare services, benefiting from rising demand for specialized medical care.
- Strong brand presence and expansion strategy provide competitive advantage.
- Moderate leverage and improving profitability strengthen long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,500 ₹ – 1,600 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for investors seeking exposure to healthcare growth. Staggered buying recommended due to high valuations.
✅ Positive
- Quarterly PAT growth (+30.6%) shows earnings momentum.
- ROE (21.0%) and ROCE (19.4%) highlight efficiency.
- FII holding increased by 0.61%, showing foreign investor confidence.
- DII holding increased by 0.15%, reflecting domestic institutional support.
⚠️ Limitation
- High P/E (79.3) and P/B (15.8) ratios indicate stretched valuations.
- Dividend yield of 0.25% is very modest, limiting passive income appeal.
- MACD at -34.6 suggests weak near-term momentum.
📉 Company Negative News
- Valuation multiples remain significantly higher than industry averages.
- Low dividend yield reduces attractiveness for income-focused investors.
📈 Company Positive News
- Quarterly PAT rose from 87.4 Cr. to 138 Cr.
- FII inflows (+0.61%) highlight foreign investor interest.
- DII inflows (+0.15%) show domestic institutional support.
🌐 Industry
- Healthcare sector benefits from rising demand for specialized services and long-term structural growth.
- Industry PE at 45.2 suggests NH trades at a steep premium, reflecting growth expectations.
🔎 Conclusion
NH demonstrates strong fundamentals with improving profitability, decent return ratios, and institutional support. However, valuations are stretched with high P/E and P/B ratios, limiting near-term upside. Investors may consider entering around 1,500–1,600 ₹ for long-term holding, while avoiding aggressive buying at current levels. The company remains fundamentally healthy and well-positioned in India’s healthcare growth story.
I can also outline technical support and resistance zones using RSI, MACD, and DMA data to complement this fundamental analysis if you’d like.