NH - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.0

🏥 Fundamental Analysis: Narayana Hrudayalaya Ltd. (NH)

NH is a leading player in India’s healthcare services sector, known for its scalable hospital model and efficient cost structures. While its valuation is rich, the company demonstrates strong profitability and growth potential, making it a quality long-term investment — albeit at the right price.

Metric Value Implication

Stock P/E 50.9 Expensive vs. industry PE of 69.2 — premium pricing for quality

PEG Ratio 1.61 Slightly overvalued — growth may not fully justify current valuation

ROE / ROCE 24.5% / 20.6% Excellent — strong capital efficiency

Dividend Yield 0.23% Very low — not suitable for income-focused investors

Debt-to-Equity 0.67 Moderate — manageable for healthcare infra

EPS ₹38.7 Strong — supports valuation and growth narrative

Profit Growth (QoQ) +7.80% Stable — consistent performance

📉 Technical & Trend Analysis

Current Price: ₹1,983

DMA 50 / DMA 200: ₹1,920 / ₹1,640 — trading above both, bullish trend

RSI: 52.1 — neutral zone, room for upside

MACD: +11.7 — bullish momentum

Volume: Slightly below average — steady interest

✅ Is It a Good Long-Term Investment?

Yes — quality compounder with strong fundamentals. NH offers excellent ROE/ROCE and consistent earnings, making it attractive for long-term growth investors. However, valuation is on the higher side, so timing your entry is key.

🎯 Ideal Entry Price Zone

Buy Zone: ₹1,800–₹1,900

Near 50 DMA and below recent highs

Accumulate gradually if PEG drops below 1.3 and ROE stays above 20%

Avoid chasing above ₹2,100 unless earnings growth accelerates

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years — to benefit from healthcare expansion and margin growth

Exit Strategy

Partial Exit near ₹2,350–₹2,400 if P/E exceeds 60 and PEG rises above 2

Hold if ROE remains >20% and PAT growth sustains

Reassess if debt rises significantly or margins compress

Would you like a comparison with other hospital chains like Apollo Hospitals or Max Healthcare to evaluate sector-wide opportunities?

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