Aster DM Quality Care Ltd.
ISIN: INE914M01019 • Market Cap: ₹69,795 Cr
The 5-Pillar Quality Audit for Aster DM Quality Care Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.6%), Return on Capital Employed (11.8%), and equity compounding (156.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.19 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.6%) and 3Y PAT CAGR (-1.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 219.01 vs PEG of 9.52 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 40.4%, backed by 38.2% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 156.9%)
Shareholder equity compounds at a healthy 156.9%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 17.6%)
Revenue has expanded at 17.6% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (38.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 38.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 11.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 219.01)
A steep valuation multiple of 219.01 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking ASTERDM 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 63/100 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 ASTERDM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Aster DM Quality Care Ltd. (ASTERDM)Current | 63/100 | ₹69,795 Cr | 219.01 | 11.8% | 0.19 | — |
| 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: Aster DM Quality Care Ltd.
Q:What is the 5-Pillar Fundamental Score for Aster DM Quality Care Ltd. (ASTERDM)?
Aster DM Quality Care Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (78/100), Financial Health (75/100), Growth (50/100), Valuation (18/100), and Ownership Quality (78/100).
Q:Is ASTERDM fundamentally strong for long-term investment?
ASTERDM currently holds a moderate quality rating of 63/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ASTERDM pass the Coffee Can Investing filter?
No. ASTERDM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ASTERDM compare against other Healthcare peers?
Within India's Healthcare sector, ASTERDM trades at a P/E of 219.01 and generates an ROCE of 11.8%. Compare its 5-Pillar score of 63/100 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.