Aashka Hospitals Limited

Healthcare — Medical Care Facilities · BSE

₹103.90₹0.00 (0.00%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

The 60-second version of Aashka Hospitals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aashka Hospitals Limited operates multi-disciplinary private hospitals, clinics, and pharmacies in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees235

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 235 employees supports ₹9.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are APOLLO HOSPITALS ENTER. L, SUN PHARMACEUTICAL IND L, CIPLA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved -207% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+21%

Margin effect-207%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.7% — barely ahead of inflation

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

72.7x

2Y Median

74.2x

28 monthly readings · mean 78.3x · range 42.1x–119.4x

Sector Median

34.9x

median of 3 sector peers

🟡Currently trading close to its 2y median of 74.2x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 108% above the peer median of 34.9x.

vs. its own history

Fair

74.2x median over 28 months · -2%

vs. sector peers

Expensive

34.9x median of 3 peers · +108%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 72% over 3 years.
Cash generation is improving
Free cash flow is up 431% over 3 years.
Return on equity is rising
ROE has improved from -2.7% to 3.2%.
Return on capital is rising
ROCE has improved from 0.4% to 4.7%.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 34.5% to 32.6% over 3 years.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 7.97x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 72% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.5% to 32.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.97x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 108% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 31%✓ 32.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 8.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹243 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

72.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.35x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.43

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

4.7%

Weak

Low return on total capital employed

Debt/Equity

7.97x

High

High leverage

Revenue Growth (YoY)

8.9%

Modest

Modest growth

Profit Growth (YoY)

56.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.4%

Weak

Assets generate little profit

Operating Margin

26.2%

Good

Healthy core-business profitability

Net Margin

13.2%

Good

Strong bottom-line conversion

Current Ratio

2.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

97.4 / 85.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

78.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹23 Cr	₹23 Cr	₹23 Cr	+6.7%
EBITDA	₹7 Cr	₹11 Cr	₹8 Cr	₹8 Cr	+4.7%
EBITDA Margin	34.5%	49.2%	33.6%	32.6%	—
PAT (Net Profit)	-₹3 Cr	₹2 Cr	₹3 Cr	₹3 Cr	—
EPS	₹-1.1	₹1.01	₹1.4	—	—
ROE	-2.7%	2.4%	3.3%	3.2%	—
ROCE	0.4%	5.2%	5.3%	4.7%	—
Total Debt	₹29 Cr	₹20 Cr	₹13 Cr	₹8 Cr	-34.4%
Free Cash Flow	₹1 Cr	₹7 Cr	₹8 Cr	₹5 Cr	+74.5%

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 4.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.5% to 32.6% over 3 years (-1.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹3 Cr.

🟢 ROE has risen from -2.7% to 3.2% over 3 years (+6.0 pts).

🟢 ROCE has risen from 0.4% to 4.7% over 3 years (+4.3 pts).

🟢 Total Debt has shrunk at 34.4% a year over 3 years.

🟢 Free Cash Flow has grown at 74.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹116 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.1%

Peer Comparison

Company	P/E	ROE
APOLLO HOSPITALS ENTER. L	54.3x	22.0%
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%

Recent News

3 mixed3 general

Aashka Hospitals Share Price Rise: Price and Valuation View

Univest, 28 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Aashka Hospitals signs MoU to acquire 70% stake in Rhythm Group entities

scanx.trade, 08 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Aashka Hospitals Share Price near 52-week high, valuation

Univest, 30 Sept

Aashka Hospitals Board Approves ₹70,000 Funding for New Subsidiary Aashka–Rhythm Hospitals

scanx.trade, 28 Jul

Aashka Hospitals Share Price rise: Rs 85, market cap, ratios

Univest, 09 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Aashka Hospitals Limited (AASHKA.BO) valuation measures and financial statistics

Yahoo Finance Singapore, 10 Jul

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Profitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑