Aster DM Healthcare Ltd.
NSE: ASTERDMAster DM Healthcare Ltd.: A 30-second snapshot
Aster DM Healthcare (₹753.65) is up 37.83% over the past year, trading above its 50-DMA (₹683.67) and 200-DMA (₹640.03) with a 52-week drawdown of just -2.12%. Despite strong recent price momentum, the trailing PE stands at 118.56 — the highest among its 6-peer sector group — while 5-year earnings have compounded at -10.5% even as revenue grew at 13% annually. Q4 FY26 profit reportedly jumped 77%, which the market appears to be extrapolating into a sustained recovery priced into the forward PE of 39.68.
P/E
118.6
Forward P/E
39.7
ROE
—
Debt / Equity
43.79
Profit Margin
+7.3%
Div. Yield
+0.6%
5Y ROE > 15%
1/5
5Y FCF > 0
3/5
Quality
42/100
News
5 headlines · 2 positive · 0 negative
Aster DM Healthcare profit jumps 77% on strong patient growth and lab performance - CNBC TV18
CNBC TV18
Buy Aster DM Healthcare; target of Rs 800: Prabhudas Lilladher - Moneycontrol.com
Moneycontrol.com
Aster DM Healthcare Publishes FY26 Earnings Call Transcript - TipRanks
TipRanks
Aster DM Healthcare posts FY26 earnings call recording for investors - TipRanks
TipRanks
Press Release Distribution India - Business Wire India
Business Wire India
Recent context
- ·Q4 FY26 profit grew 77% year-on-year, attributed to strong patient volume growth and improved lab segment performance, per CNBC TV18 reporting on 30 April 2026.
- ·Prabhudas Lilladher published a note with a stated price target of ₹800 on the stock (Moneycontrol, 4 May 2026); resistance on the technical chart is identified at ₹770, approximately 2.2% above current price of ₹753.65.
- ·The company released its FY26 earnings call transcript and recording in early May 2026, providing investors with management commentary on the operational recovery trajectory.
Strengths
- +Revenue has compounded at 13% annually over 5 years, demonstrating consistent top-line scale-up in hospital network expansion across India and the Gulf region.
- +Price momentum is the strongest in the peer group: up 37.83% over 12 months versus peers with null or lower 1-year returns, and up 26.07% over the past 3 months alone.
- +Debt trend is classified as falling, suggesting the company is actively reducing its leverage burden despite the absolute D/E remaining elevated at 43.79.
- +Most recent quarterly result (Q4 FY26) showed a 77% profit jump driven by patient growth and lab performance, indicating operational leverage may be starting to translate to the bottom line.
Weaknesses
- −5-year earnings CAGR of -10.5% alongside 13% revenue growth points to sustained margin compression; profit margin at 7.33% leaves limited buffer against cost or pricing pressure.
- −Debt-to-equity of 43.79 is materially above peers such as APOLLOHOSP and MAXHEALTH; the company ranked 6th of 6 on quality score (22) within its sector peer group.
- −FCF was positive in only 3 of available years and ROE exceeded 15% in only 1 year, indicating the business has not consistently generated returns above cost of capital over the measured period.
- −Trailing PE of 118.56 — highest in the 6-peer group where nearest comparables APOLLOHOSP (64.50) and MAXHEALTH (72.44) trade at meaningfully lower multiples — embeds expectations of a significant and durable earnings recovery.
Open questions
- ?Is the 77% Q4 FY26 profit jump a structural inflection driven by operating leverage, or does it reflect one-time items such as asset sales or low base effects from the prior year?
- ?Given a D/E of 43.79 on a falling trend, at what pace is debt being reduced, and what is the interest coverage ratio relative to EBITDA margins in recent quarters?
- ?The forward PE of 39.68 against a trailing PE of 118.56 implies a roughly 3x earnings increase is already priced in — what specific volume, pricing, or margin assumptions underpin that forward estimate?
- ?How does Aster DM's geographic mix (India hospitals vs. Gulf clinics) affect the quality of its earnings, and what is the capital allocation plan now that the GCC business has been restructured?
Peer comparison: Pharma
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ASTERDM | Aster DM Healthcare Ltd.You're viewing | 118.6 | — | 22 |
| Industry avg | across 5 peers | 46.9 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.4 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.5 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.7 | +11.8% | 17 |
Technical state
Current price
₹753.65
SMA 50
₹683.67
SMA 200
₹640.03
RSI (14)
66.9 (neutral)
From 52w high
-2.1%
1Y return
+37.8%
3M return
+26.1%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings CAGR of -10.5% against 5-year revenue CAGR of 13% signals persistent margin erosion; profit margin stands at 7.33% and earnings have compounded negatively over the period despite top-line growth.
- highDebt-to-equity of 43.79 is materially elevated for a hospital operator; while healthcare is capital-intensive, this level stands well above comparable peers APOLLOHOSP and MAXHEALTH.
- mediumQuality score of 22 ranks last (6th of 6) among tracked sector peers; FCF was positive in only 3 of available years and ROE exceeded 15% in only 1 year, indicating thin quality persistence.
- mediumTrailing PE of 118.56 versus forward PE of 39.68 implies a large earnings step-up is already priced in; if the anticipated earnings improvement does not materialise, the valuation compression could be significant.
- lowNews sample is small (5 articles); sentiment derived from this limited set (2 positive, 3 neutral, 0 negative) may not be representative of the full information environment.
Cross-section contradictions
- Price is up 37.83% over 1 year and trades above both the 50-DMA (₹683.67) and 200-DMA (₹640.03), yet the 5-year earnings CAGR is -10.5% and quality score ranks last among peers — price appreciation is running materially ahead of demonstrated earnings improvement.
- Forward PE of 39.68 implies the market prices in a sharp near-term earnings recovery, while a consistency score of 42 and only 1 of available years with ROE above 15% provide limited historical basis for that recovery.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days