Fortis Healthcare Ltd.
NSE: FORTISFortis Healthcare Ltd.: A 30-second snapshot
Fortis Healthcare trades at 970.65, up 43.62% over 12 months and above both its 50-DMA (885.06) and 200-DMA (920.63). The trailing PE of 75.76 is among the highest in a 6-peer sector cohort, against a backdrop of 5-year earnings decline of -21.6% CAGR and debt-to-equity of 32.96. Revenue has grown at 17.5% CAGR over 5 years, but profit margins remain thin at 10.94%.
P/E
75.8
Forward P/E
50.8
ROE
—
Debt / Equity
32.96
Profit Margin
+10.9%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
42/100
News
8 headlines · 5 positive · 1 negative
Fortis Healthcare Updates on Tokyo District Court Litigation Proceedings - scanx.trade
scanx.trade
Fortis Healthcare Q4 PAT seen up 7.4% YoY to Rs. 243.3 cr: ICICI Securities - Moneycontrol.com
Moneycontrol.com
Stocks To Buy: Motilal Oswal 'bull case' projects 36% upside for this hospital chain - CNBC TV18
CNBC TV18
Fortis Hospital Manesar launches Fortis Cancer Institute - Medical Dialogues
Medical Dialogues
Fortis Healthcare launches preventive genomics clinic in Bengaluru to boost precision medicine - ET HealthWorld
ET HealthWorld
Recent context
- ·ICICI Securities previewed Q4 FY26 PAT at 243.3 crore (approximately +7.4% year-on-year), which, if realised, would represent a sequential improvement measured against the multi-year earnings decline trend.
- ·Tokyo District Court litigation proceedings were updated in April 2026; the nature and quantum of the claim have not been publicly quantified, keeping the risk item open.
- ·Motilal Oswal published a note citing a bull-case upside scenario for the hospital chain; separately, Fortis opened a cancer institute in Manesar and a genomics clinic in Bengaluru as part of an ongoing capacity expansion.
Strengths
- +Revenue CAGR of 17.5% over 5 years demonstrates consistent top-line expansion across the hospital network, with Q4 FY26 PAT previewed by ICICI Securities at 243.3 crore, approximately 7.4% higher year-on-year.
- +Free cash flow was positive in 4 of 5 available years, suggesting the core operating business generates cash despite elevated leverage.
- +The stock is up 43.62% over 12 months and has maintained a position above its 200-DMA, with the 52-week drawdown limited to -12.1% from the high.
- +Capacity expansion is active — a cancer institute in Manesar and a precision medicine genomics clinic in Bengaluru were launched in April-May 2026, indicating ongoing network investment.
Weaknesses
- −5-year earnings CAGR of -21.6% shows that sustained revenue growth has not flowed through to profit; ROE is unavailable and 0 of 5 years recorded ROE above 15% — the consistency score of 37/100 is among the lower readings in the peer set.
- −Debt-to-equity of 32.96 is exceptionally elevated for a hospital operator and the debt trend is rising; the quality score of 32/100 ranks 4th of 6 sector peers.
- −Trailing PE of 75.76 is above the peer median; with earnings on a 5-year declining trajectory, the premium valuation rests on forward earnings recovery that has not yet materialized historically.
- −Active Tokyo District Court litigation (reported April 2026) introduces legal tail risk; the financial exposure is not yet quantifiable from public disclosures.
Open questions
- ?Does the persistent gap between 17.5% revenue CAGR and -21.6% earnings CAGR reflect rising debt-service costs, one-time impairments, or a structural deterioration in hospital operating margins — and has the trend reversed in the most recent two quarters?
- ?With debt-to-equity at 32.96 and a rising debt trend, what portion of incremental revenue is being absorbed by interest and financing costs, and at what leverage level does the business become self-sustaining on a post-tax basis?
- ?How does Fortis's forward PE of 50.75 compare with the earnings growth implied by analyst forecasts, and what assumptions underpin any re-rating from trailing to forward multiples?
- ?What is the nature, scale, and timeline of the Tokyo District Court litigation, and how has management communicated the potential liability in recent investor disclosures?
Peer comparison: Pharma
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FORTIS | Fortis Healthcare Ltd.You're viewing | 75.8 | — | 32 |
| Industry avg | across 5 peers | 47.0 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.5 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.6 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.6 | +11.8% | 17 |
Technical state
Current price
₹970.65
SMA 50
₹885.06
SMA 200
₹920.63
RSI (14)
64.8 (neutral)
From 52w high
-12.1%
1Y return
+43.6%
3M return
+8.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings CAGR of -21.6% against 5-year revenue CAGR of 17.5%: revenue growth has not translated to profit growth over the period, and the consistency score of 37/100 with 0 of 5 years recording ROE above 15% reflects persistent weakness in return on capital.
- highDebt-to-equity of 32.96 is exceptionally elevated for a hospital operator, and the debt trend is flagged as rising; with ROE unavailable, the cost of that leverage cannot be assessed against returns.
- mediumTrailing PE of 75.76 is the second-highest among 6 sector peers (Max Healthcare 72.52, Apollo 64.64, Sun Pharma 41.32, Cipla 29.84, Dr. Reddys 26.56), while the quality score of 32/100 ranks 4th of 6 — a premium valuation relative to most peers alongside below-median quality metrics.
- mediumActive Tokyo District Court litigation reported April 2026; legal proceedings introduce tail risk that is not yet quantifiable from public disclosures.
- lowRSI at 64.83 is approaching the upper band of the neutral range; nearest resistance at 977.40 sits approximately 0.7% above the current price of 970.65.
Cross-section contradictions
- Revenue has compounded at 17.5% annually over 5 years while earnings have declined at -21.6% annually over the same period — sustained top-line expansion coinciding with bottom-line contraction is atypical and may reflect rising interest costs, non-operating charges, or structural margin compression.
- The stock is up 43.62% over 12 months and trades above both its 50-DMA (885.06) and 200-DMA (920.63), yet earnings growth has been negative over 5 years and the quality score ranks 4th of 6 sector peers — price performance has diverged materially from the underlying profitability trajectory.
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 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days