Dr. Agarwal's Health Care Ltd.
ISIN: INE943P01029 • Market Cap: —
The 5-Pillar Quality Audit for Dr. Agarwal's Health Care Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (27.7%), Return on Capital Employed (8.8%), and equity compounding (4.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.13 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (29.4%) and 3Y PAT CAGR (25.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 106.77 vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 32.3%, backed by 65.7% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.13)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 29.4%)
Revenue has expanded at 29.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 25.3%)
Net earnings have compounded at 25.3% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (65.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 65.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 106.77)
A steep valuation multiple of 106.77 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking AGARWALEYE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 67/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare AGARWALEYE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Dr. Agarwal's Health Care Ltd. (AGARWALEYE)Current | 67/100 | — | 106.77 | 8.8% | 0.13 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Dr. Agarwal's Health Care Ltd.
Q:What is the 5-Pillar Fundamental Score for Dr. Agarwal's Health Care Ltd. (AGARWALEYE)?
Dr. Agarwal's Health Care Ltd. has a RupeeTools Fundamental Score of 67/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (60/100), Financial Health (80/100), Growth (94/100), Valuation (15/100), and Ownership Quality (72/100).
Q:Is AGARWALEYE fundamentally strong for long-term investment?
AGARWALEYE currently holds a moderate quality rating of 67/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does AGARWALEYE pass the Coffee Can Investing filter?
No. AGARWALEYE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does AGARWALEYE compare against other Healthcare peers?
Within India's Healthcare sector, AGARWALEYE trades at a P/E of 106.77 and generates an ROCE of 8.8%. Compare its 5-Pillar score of 67/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.