Narayana Hrudayalaya Ltd.
ISIN: INE410P01011 • Market Cap: ₹36,431 Cr
The 5-Pillar Quality Audit for Narayana Hrudayalaya Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.3%), Return on Capital Employed (12.1%), and equity compounding (17.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.07 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (22.9%) and 3Y PAT CAGR (1.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 44.64 vs PEG of 1.93 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 63.3%, backed by 18.5% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 22.9%)
Revenue has expanded at 22.9% CAGR over 3 years, signaling industry market-share gains.
Consistent Market Standing (Large Cap)
Established player in the Healthcare sector with an overall fundamental quality score of 65/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.07)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking NH 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 65/100 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 NH directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Narayana Hrudayalaya Ltd. (NH)Current | 65/100 | ₹36,431 Cr | 44.64 | 12.1% | 1.07 | — |
| 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: Narayana Hrudayalaya Ltd.
Q:What is the 5-Pillar Fundamental Score for Narayana Hrudayalaya Ltd. (NH)?
Narayana Hrudayalaya Ltd. has a RupeeTools Fundamental Score of 65/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (69/100), Financial Health (65/100), Growth (62/100), Valuation (52/100), and Ownership Quality (78/100).
Q:Is NH fundamentally strong for long-term investment?
NH currently holds a moderate quality rating of 65/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does NH pass the Coffee Can Investing filter?
No. NH does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does NH compare against other Healthcare peers?
Within India's Healthcare sector, NH trades at a P/E of 44.64 and generates an ROCE of 12.1%. Compare its 5-Pillar score of 65/100 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.