NH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NH | Market Cap | 37,939 Cr. | Current Price | 1,854 ₹ | High / Low | 2,372 ₹ |
| Stock P/E | 76.8 | Book Value | 114 ₹ | Dividend Yield | 0.24 % | ROCE | 19.4 % |
| ROE | 21.0 % | Face Value | 10.0 ₹ | DMA 50 | 1,801 ₹ | DMA 200 | 1,780 ₹ |
| Chg in FII Hold | -1.12 % | Chg in DII Hold | 1.23 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 138 Cr. |
| RSI | 54.1 | MACD | 33.7 | Volume | 5,30,223 | Avg Vol 1Wk | 3,99,225 |
| Low price | 1,564 ₹ | High price | 2,372 ₹ | PEG Ratio | 1.66 | Debt to equity | 0.69 |
| 52w Index | 35.9 % | Qtr Profit Var | 37.1 % | EPS | 22.6 ₹ | Industry PE | 47.8 |
📊 Financials: The company shows moderate profitability with ROE at 21.0% and ROCE at 19.4%, reflecting decent efficiency in capital usage. Debt-to-equity is 0.69, indicating moderate leverage. Quarterly PAT declined from ₹138 Cr. to ₹109 Cr., showing earnings pressure. EPS of ₹22.6 supports cash flow generation but remains modest relative to valuation.
💹 Valuation: Current P/E of 76.8 is significantly higher than the industry average of 47.8, suggesting overvaluation. The PEG ratio of 1.66 indicates growth prospects are somewhat aligned but not compelling at current price levels. Book value of ₹114 against a market price of ₹1,854 implies a stretched P/B ratio. Intrinsic value appears lower than current levels, requiring caution.
🏭 Business Model: The company operates in healthcare services, benefiting from strong demand, brand recognition, and expansion opportunities. Competitive advantage lies in its scale, specialized offerings, and growing institutional support, though profitability volatility remains a concern.
📈 Entry Zone: A favorable entry would be closer to ₹1,700–1,750, near the 200 DMA of ₹1,780. Current price of ₹1,854 is above fair value, so accumulation on dips is recommended.
⏳ Long-Term Holding: While the company has strong brand presence and moderate returns, stretched valuations and earnings volatility suggest cautious long-term holding. Investors should accumulate gradually on dips rather than aggressively at current levels.
Positive
- ✅ Strong ROE (21.0%) and ROCE (19.4%)
- ✅ EPS of ₹22.6 supports cash flow generation
- ✅ Increase in DII holding (+1.23%) shows domestic institutional confidence
Limitation
- ⚠️ Very high P/E (76.8) compared to industry average
- ⚠️ Stretched P/B ratio (Price ₹1,854 vs. Book Value ₹114)
- ⚠️ PAT declined from ₹138 Cr. to ₹109 Cr.
Company Negative News
- 📉 Decline in FII holding (-1.12%) shows reduced foreign investor confidence
- 📉 Quarterly PAT decline highlights earnings pressure
Company Positive News
- 📈 Increase in DII holding (+1.23%) reflects strong domestic institutional support
- 📈 RSI at 54.1 indicates neutral-to-positive momentum
Industry
- 🏥 Healthcare sector benefits from rising demand and institutional expansion
- 📊 Industry P/E at 47.8 suggests peers are valued lower
- 🌍 Growth opportunities in specialized healthcare and hospital networks
Conclusion
Overall, the company is financially stable with strong return ratios and institutional support. However, valuations are stretched compared to peers, and earnings have shown recent weakness. Best strategy is cautious accumulation near ₹1,700–1,750 for long-term holding, while avoiding aggressive buying at current levels.
Would you like me to extend this with a peer comparison against other healthcare service companies, or a technical analysis view to highlight support/resistance and momentum indicators?