📌 At a Glance
Narayana Hrudayalaya runs 40 hospitals across India and the Cayman Islands — and it turns out, saving lives is a great business model. With a 44% stock CAGR over 3 years, 24.5% ROE, and a steady ₹790+ Cr PAT run-rate, NH has quietly become the most capital-efficient hospital chain in the country. But at 49x earnings, is it still investible… or in need of financial bypass?
1️⃣ Business Model – Cardio Capitalism Done Right
NH is asuper-specialty hospital chainfocused heavily on cardiac, oncology, neurology, and transplant surgeries. Think: lower cost than Apollo, but higher operational discipline.
Operations:
- India:19 hospitals, 2 heart centers, 18 clinics/dialysis
- Cayman Islands:1 big dollar-minting hospital
- Beds:5,789 operational beds across 40 healthcare facilities
- Occupancy:~65–70% average
- ARPOB:Continues to rise steadily YoY
The Cayman unit (yes, that one) generates50%+ EBITDA margins— it’s NH’s cash cow in beachwear.
2️⃣ Financials – Clean, Scalable, Profitable
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue | ₹5,483 Cr | +9% |
| Net Profit | ₹791 Cr | Flat |
| EBITDA Margin | 23% | Steady |
| ROE | 24.5% | Excellent |
| EPS | ₹38.66 | ↔ |
| Dividend Payout | 12% | Token |
💡5-Year Profit CAGR:44%💡5-Year Stock CAGR:48%
Margins are high, cash flows are clean, and capex is self-funded. A hospital that acts like an FMCG stock? Yep.
3️⃣ Valuation – Rich, But Justified?
- P/E:49
- P/B:10.7
- Market Cap:₹39,000 Cr
- EV/EBITDA:~28x (based on run-rate)
🧠Fair Value Range (EduEstimate): ₹1,400–1,600Assuming steady ₹850–₹900 Cr PAT
