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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Narayana Hrudayalaya Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:44 pm

Market Cap 25,721 Cr.
Current Price 1,259
High / Low1,445/1,080
Stock P/E33.0
Book Value 157
Dividend Yield0.32 %
ROCE26.5 %
ROE31.4 %
Face Value 10.0
PEG Ratio0.73

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Narayana Hrudayalaya Ltd

Competitors of Narayana Hrudayalaya Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Global Longlife Hospital and Research Ltd 33.6 Cr. 32.061.7/27.0 25.90.00 %2.51 %4.72 % 10.0
Gian Lifecare Ltd 19.3 Cr. 18.629.0/17.04.73 19.20.00 %29.2 %24.6 % 10.0
Fortis Malar Hospitals Ltd 99.4 Cr. 53.0108/44.0 15.980.1 %3.29 %9.12 % 10.0
Family Care Hospitals Ltd 36.5 Cr. 6.7510.4/6.230.88 2.670.00 %15.4 %24.1 % 10.0
Dr Lalchandani Labs Ltd 8.12 Cr. 18.728.9/0.009.44 22.40.00 %2.68 %8.23 % 10.0
Industry Average28,352.25 Cr787.4249.9590.793.86%11.58%12.32%9.00

All Competitor Stocks of Narayana Hrudayalaya Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7508388609409609411,0331,1421,1281,2221,2331,3051,204
Expenses648698728774787768842898874946963997925
Operating Profit102140132167173172192244254276271308279
OPM %14%17%15%18%18%18%19%21%23%23%22%24%23%
Other Income587127108311215151818
Interest19181717161615151921212325
Depreciation46444546464747495756595563
Profit before tax428577116117119137211190214206248209
Tax %2%20%1%14%17%42%19%20%19%19%11%9%10%
Net Profit416876999869111169154173184227188
EPS in Rs2.003.333.734.864.773.375.418.267.528.479.0011.099.20

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6588391,0951,3641,6141,8782,2812,8613,1282,5833,7014,5254,964
Expenses5747699891,2361,4341,6422,0642,5662,6942,3943,0383,5383,830
Operating Profit84701061281802362172954341896649871,133
OPM %13%8%10%9%11%13%10%10%14%7%18%22%23%
Other Income328396-1971816721265966
Interest11193145332855819482768489
Depreciation374657687680100137186184183210234
Profit before tax39345721511358093161-56430752876
Tax %33%29%38%71%59%39%36%37%26%75%20%19%
Net Profit262429-1921835159119-14342607772
EPS in Rs791.33762.14974.49-0.841.044.062.512.905.82-0.7016.7329.6737.76
Dividend Payout %0%0%0%0%0%0%0%35%17%0%6%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-7.69%20.83%-165.52%210.53%295.24%-38.55%15.69%101.69%-111.76%2542.86%77.49%
Change in YoY Net Profit Growth (%)0.00%28.53%-186.35%376.04%84.71%-333.79%54.24%86.01%-213.46%2654.62%-2465.37%

Narayana Hrudayalaya Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:16%
5 Years:12%
3 Years:25%
TTM:7%
Compounded Profit Growth
10 Years:51%
5 Years:68%
3 Years:365%
TTM:6%
Stock Price CAGR
10 Years:%
5 Years:33%
3 Years:29%
1 Year:1%
Return on Equity
10 Years:17%
5 Years:24%
3 Years:31%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.330.33200204204204204204204204204204204
Reserves5475805686727598318779329161,2841,9272,6793,001
Borrowings2563333622582178028139528267238841,6271,703
Other Liabilities1602422414244686927468138339311,1551,1231,334
Total Liabilities9631,1561,3711,5571,6482,5292,6402,9012,7793,1434,1705,6336,243
Fixed Assets6207389131,0541,0821,8481,8382,0921,9611,9802,3362,6513,068
CWIP44202014533556122067259514737
Investments75152879691786120132252844911
Other Assets2923463854024176377297116789641,3231,6241,528
Total Assets9631,1561,3711,5571,6482,5292,6402,9012,7793,1434,1705,6336,243

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +45110771742191822794433044851,0851,067
Cash from Investing Activity +-147-168-223-150-146-520-162-189-113-267-1,176-1,458
Cash from Financing Activity +1085714018-45315-27-247-194-15988488
Net Cash Flow6-1-64228-22897-259-497

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow84.00-186.00-227.00-234.00-78.0019.00-585.00-518.00-518.00-637.00-59.00103.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days404538343045343139433531
Inventory Days606456484556483532303142
Days Payable121198146152173200177177221180224205
Cash Conversion Cycle-21-90-51-70-98-100-95-111-150-108-158-132
Working Capital Days102-3-2-9-4-8-17-17-0-11-9
ROCE %5%8%7%9%14%9%9%14%2%25%32%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters63.85%63.85%63.85%63.85%63.85%63.85%63.85%63.85%63.85%63.85%63.85%63.85%
FIIs10.80%10.64%10.03%9.55%10.24%10.36%11.10%11.59%11.51%10.91%10.01%9.69%
DIIs18.96%18.34%17.85%16.62%14.58%14.14%11.95%10.89%10.23%9.51%8.22%7.90%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.00%
Public5.69%6.47%7.59%9.28%10.70%11.01%12.45%13.05%13.78%15.12%17.29%17.94%
Others0.70%0.70%0.69%0.69%0.63%0.63%0.63%0.62%0.62%0.62%0.62%0.62%
No. of Shareholders43,80752,74765,17368,13073,15775,37086,6311,02,9941,20,5061,38,0521,60,6861,78,356

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund6,641,1674.54813.94927,8452024-11-20615.76%
Axis Flexi Cap Fund1,971,6062.17241.64927,8452024-11-20112.49%
Nippon India Pharma Fund1,849,5713.65226.68927,8452024-11-2099.34%
DSP Small Cap Fund1,801,1891.69220.75927,8452024-11-2094.13%
Nippon India Multi Cap Fund927,8450.5113.72927,8452024-11-200%
Axis Multicap Fund907,6942.41111.25927,8452024-11-20-2.17%
HDFC ELSS Tax Saver Fund300,0000.336.77927,8452024-11-20-67.67%
UTI Small Cap Fund289,6011.0335.49927,8452024-11-20-68.79%
Bandhan Flexi Cap Fund255,1430.4931.27927,8452024-11-20-72.5%
Baroda BNP Paribas Small Cap Fund200,0002.0124.51927,8452024-11-20-78.44%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)38.8629.8516.85-0.705.86
Diluted EPS (Rs.)38.8629.8516.85-0.705.86
Cash EPS (Rs.)50.4939.9726.148.6215.08
Book Value[Excl.RevalReserv]/Share (Rs.)141.18104.3572.8854.8455.61
Book Value[Incl.RevalReserv]/Share (Rs.)141.18104.3572.8854.8455.61
Revenue From Operations / Share (Rs.)245.56221.41181.12126.36153.05
PBDIT / Share (Rs.)60.0750.4633.6710.2921.86
PBIT / Share (Rs.)48.2240.1924.691.3112.77
PBT / Share (Rs.)43.4836.7921.45-2.418.06
Net Profit / Share (Rs.)38.6429.6917.16-0.365.99
NP After MI And SOA / Share (Rs.)38.6229.6616.73-0.695.82
PBDIT Margin (%)24.4622.7918.598.1414.28
PBIT Margin (%)19.6318.1413.631.038.34
PBT Margin (%)17.7016.6111.84-1.905.26
Net Profit Margin (%)15.7313.409.47-0.283.91
NP After MI And SOA Margin (%)15.7213.399.23-0.553.80
Return on Networth / Equity (%)27.3628.4422.96-1.2710.46
Return on Capital Employeed (%)21.8225.8621.461.2911.38
Return On Assets (%)14.0314.5610.92-0.514.11
Long Term Debt / Equity (X)0.410.290.290.440.54
Total Debt / Equity (X)0.500.350.360.460.55
Asset Turnover Ratio (%)1.031.000.950.660.92
Current Ratio (X)1.751.311.170.940.97
Quick Ratio (X)1.651.241.090.870.87
Dividend Payout Ratio (NP) (%)6.433.340.000.0041.18
Dividend Payout Ratio (CP) (%)4.922.480.000.0016.07
Earning Retention Ratio (%)93.5796.660.000.0058.82
Cash Earning Retention Ratio (%)95.0897.520.000.0083.93
Interest Coverage Ratio (X)12.6714.8510.382.775.24
Interest Coverage Ratio (Post Tax) (X)9.159.746.290.902.56
Enterprise Value (Cr.)27191.9816202.9815629.998692.935572.05
EV / Net Operating Revenue (X)5.423.584.223.371.78
EV / EBITDA (X)22.1515.7122.7241.3412.47
MarketCap / Net Operating Revenue (X)5.213.504.123.211.62
Retention Ratios (%)93.5696.650.000.0058.81
Price / BV (X)9.077.4210.257.414.45
Price / Net Operating Revenue (X)5.213.504.123.211.62
EarningsYield0.030.030.020.000.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Narayana Hrudayalaya Ltd as of November 21, 2024 is: 1,632.04

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Narayana Hrudayalaya Ltd is Undervalued by 29.63% compared to the current share price 1,259.00

Intrinsic Value of Narayana Hrudayalaya Ltd as of November 21, 2024 is: 2,372.21

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Narayana Hrudayalaya Ltd is Undervalued by 88.42% compared to the current share price 1,259.00

Last 5 Year EPS CAGR: 45.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -5.67, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -98.67, which is a positive sign.
  3. The company has higher reserves (1,197.92 cr) compared to borrowings (750.46 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (117.00 cr) and profit (205.62 cr) over the years.
  1. The stock has a low average ROCE of 13.42%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Narayana Hrudayalaya Ltd:
    1. Net Profit Margin: 15.73%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.82% (Industry Average ROCE: 11.58%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.36% (Industry Average ROE: 11.76%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.15
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.65
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 33 (Industry average Stock P/E: 38.6)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.5
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Narayana Hrudayalaya Ltd. is a Public Limited Listed company incorporated on 19/07/2000 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA2000PLC027497 and registration number is 027497. Currently Company is involved in the business activities of Hospital activities. Company’s Total Operating Revenue is Rs. 2411.99 Cr. and Equity Capital is Rs. 204.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hospitals & Medical ServicesNo.258/A, Bommasandra Industrial Area, Bengaluru Karnataka 560099investorrelations@narayanahealth.org
http://www.narayanahealth.org
Management
NamePosition Held
Dr. Devi Prasad ShettyChairman & Wholetime Director
Mr. Viren Prasad ShettyExe.Vice Chairman & Whole Time Director
Dr. Emmanuel RupertManaging Director & Group CEO
Dr. Kiran Mazumdar ShawNon Executive Director
Dr. Anesh ShettyAddnl. & Non Exe.Director
Ms. Nivruti RaiAddnl. & Non Exe.Director
Ms. Terri Smith BresenhamIndependent Director
Mr. Shankar ArunachalamIndependent Director
Dr. Nachiket MorIndependent Director
Mr. Naveen TewariIndependent Director

FAQ

What is the latest intrinsic value of Narayana Hrudayalaya Ltd?

The latest intrinsic value of Narayana Hrudayalaya Ltd as on 21 November 2024 is ₹1632.04, which is 29.63% higher than the current market price of ₹1,259.00.

What is the Market Cap of Narayana Hrudayalaya Ltd?

The Market Cap of Narayana Hrudayalaya Ltd is 25,721 Cr..

What is the current Stock Price of Narayana Hrudayalaya Ltd as on 21 November 2024?

The current stock price of Narayana Hrudayalaya Ltd as on 21 November 2024 is ₹1,259.

What is the High / Low of Narayana Hrudayalaya Ltd stocks in FY 2024?

In FY 2024, the High / Low of Narayana Hrudayalaya Ltd stocks is 1,445/1,080.

What is the Stock P/E of Narayana Hrudayalaya Ltd?

The Stock P/E of Narayana Hrudayalaya Ltd is 33.0.

What is the Book Value of Narayana Hrudayalaya Ltd?

The Book Value of Narayana Hrudayalaya Ltd is 157.

What is the Dividend Yield of Narayana Hrudayalaya Ltd?

The Dividend Yield of Narayana Hrudayalaya Ltd is 0.32 %.

What is the ROCE of Narayana Hrudayalaya Ltd?

The ROCE of Narayana Hrudayalaya Ltd is 26.5 %.

What is the ROE of Narayana Hrudayalaya Ltd?

The ROE of Narayana Hrudayalaya Ltd is 31.4 %.

What is the Face Value of Narayana Hrudayalaya Ltd?

The Face Value of Narayana Hrudayalaya Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Narayana Hrudayalaya Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE