healthcare

Aster DM Healthcare

ASTERDM · Nifty 50

765.95

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionhealthcare sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score90/100 (STRONG). 1 positive flags, 5 concerns.
Historical Context40 similar technical setups. Average outcome: -8.5% decline. 0% positive.

Fundamental

90/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Aster DM Healthcare scores 90/100 on fundamentals (strong). Aster DM Healthcare: BROAD EXPANSION regime.

Fundamental Score: 90/100 · STRONG · 3 signals detected

DuPont Analysis

ROE 8.0% broken into three drivers. Each shows how efficiently the company generates returns.

ROE8.0%=
6.5%Net Margin
×
0.6xTurnover
×
1.9xLeverage

ROE of 7.99% is modest margin-driven and stable. Net margin of 6.5% × asset turnover of 0.64x × leverage of 1.9x.

What This Means

Net margin of 6.5% means the company keeps ₹6.5 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.64x means the company efficiently uses its assets to generate revenue. Leverage of 1.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

76.8%

Operating

12.8%

Net

6.5%

declining

Gross margin 76.8% → operating margin 12.8% → net margin 6.5%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 5.0x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.5x is moderate.

Free Cash Flow

STRONG

FCF margin at 1.6% — barely positive. Limited cash after capex.

Peer Comparison

Aster DM Healthcare is compared against 5 peers in the healthcare sector.

Key Watchpoints

🟢

Breaks above ₹804 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹728 (-5%)

Further downside risk

🟢

Healthcare sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
➡️ Leverage Slowly Rising: Debt growing faster (45.8%) than equity (-24.8%)
✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 4 Warning1 Positive6 total flags
🔴Cash covers only 19% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Unusual items are 15% of net income
Earnings Quality

One-off gains contributing to profit. Check sustainability of earnings without these items.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹50K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Working capital changes are 33% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Price/Sales: 8.8x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Assets relatively new (21% depreciated)
Balance Sheet

Modern asset base. Lower near-term capex requirements.

⚠️ 1 critical + 4 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. Multi-year data.

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
126.5UNAVAILABLE
P/B Ratio
9.2HIGH
Market Cap
₹4212797.6L CrHIGH
From 52W High
92% of high
Sector Peers
5
Aster DM Healthcare Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight