CMP ₹1,730 | FY25 PAT ₹710 Cr | EPS ₹34.71 | Revenue ₹5,224 Cr | P/E ~49.8x | EBITDA Margin: 22.2%
📌 At a Glance
Narayana Hrudayalaya — India’s discount-heart-surgery kingpin — just pulled off one of the cleanest hospital earnings of FY25:
- 🏥 Revenue up 14.5% YoY
- 💰 PAT up 18.4% YoY
- 🧾 EPS ₹34.71
- 🧮 P/E: ~50x (expensive, but maybe deserved)
- 🏗️ Capex ~₹384 Cr
- 💸 Final dividend: ₹5/share
- 🧠 Patient volumes up, ARPOB up, and even Cayman Islands business glowing like a post-transplant miracle
But CMP ₹1,730 is pricing in perfection. Let’s see if it’s healthy enough to justify it.
📊 Q4 FY25 vs Q4 FY24
| Metric | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | Growth |
|---|---|---|---|
| Revenue | 1,381.71 | 1,195.23 | 🔼 15.6% |
| EBITDA | 308.01 | 238.88 | 🔼 28.9% |
| EBITDA Margin | 22.3% | 20.0% | ✅ Expand |
| Net Profit | 183.25 | 128.57 | 🔼 42.5% |
| EPS | ₹8.91 | ₹6.25 | 🔼 42.5% |
🎯 Q4 alone delivered ₹183 Cr profit — higher than some listed hospital chains deliver in a full year.
📅 FY25 vs FY24
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | Growth |
|---|---|---|---|
| Revenue | 5,224.38 | 4,565.49 | 🔼 14.5% |
| EBITDA | 1,158.47 | 965.37 | 🔼 20.0% |
| EBITDA Margin | 22.2% | 21.1% | ✅ Improved |
| PAT | 710.32 | 599.67 | 🔼 18.4% |
| EPS | ₹34.71 | ₹29.29 | 🔼 18.5% |
📈 Operating leverage kicking in
📉 But no flashy revenue tricks, just gradual ARPOB + patient volume build
🧾 Balance Sheet Checkup (as of March 2025)
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Total Assets | 4,514.21 | 4,123.48 |
| Net Worth | 2,888.43 | 2,304.71 |
| Debt (Borrowings) | 233.85 | 379.92 |
| Cash & Equivalents | 622.14 | 437.30 |
| Net Cash Position | ₹388.3 Cr | ₹57.4 Cr |
| Debt-to-Equity Ratio | 0.08x | 0.16x |
| ROCE | 25.5% | 22.6% |
Verdict:
🏥 This is not a hospital chain. This is a private equity-grade EBITDA machine with zero BS and 20%+ margins.
🌎 Segment Split (FY25)
| Segment | Revenue (₹ Cr) | YoY Growth | Margin |
|---|---|---|---|
| Indian Hospitals | 4,485.83 | 13.8% | 21.6% |
| Cayman Operations | 738.55 | 18.9% | 25.3% |
🔥 Cayman Islands hospital = absolute beast
🔥 ARPOB in Cayman is almost 5x Indian average
🔥 New robotic surgeries and oncology are margin expanders
🧠 EduInvesting Take: “Narayana is running a hospital. But it’s behaving like a clean SaaS company.”
- High ROCE? ✅
- Clean audit? ✅
- Dividend-paying? ✅
- Net cash? ✅
- CAPEX funded via internal accruals? ✅
- Growth from Tier 2 cities + medical tourism? ✅
No wonder this stock has gone from ₹200 to ₹1,700 in under 4 years.
⚠️ Risks & Red Flags
- 🧾 CMP ₹1,730 → P/E ~50x = rich af
- 🧪 High expectation baked into stock price
- 🇺🇸 Cayman could slow if US insurance policies change
- 💊 Doctor attrition, competitive hiring in private sector
- 🧮 Zero margin of error at this P/E level
🧾 Dividend Details
- Final Dividend: ₹5/share
- Total Dividend FY25: ₹8/share
- Yield = 0.46% — because this is not a yield stock.
🎯 Final Verdict (No Buy/Sell, Just Surgery):
“Narayana Hrudayalaya isn’t a hospital stock. It’s a profit transplant center. They removed inefficiencies, stitched up the margins, and put EBITDA on life support — until it ran a marathon.”
Is it expensive? Hell yes.
Is it efficient? Absolutely.
Is it a risk? Only if growth stalls.
Author: Prashant Marathe
Date: May 23, 2025
Tags: Narayana Hrudayalaya, FY25 Results, Healthcare Stocks, EPS Growth, EBITDA Margin, Medical Tourism, Caymans Hospital, EduInvesting, Funny Finance, Clean Balance Sheet
