Dr. Agarwal's Health Care Limited

Healthcare — Medical Instruments & Supplies · NSE

₹467.00−₹10.15 (−2.13%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Dr. Agarwal's Health Care Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dr. Agarwal's Health Care Limited engages in running, owning, and managing eye care hospitals, opticals, pharmacies, etc. and related services in India and internationally.

IndustryMedical Instruments & Supplies

SectorHealthcare

Annual revenue₹2,077 Cr

How does it make money?

Turns over ₹2,077 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

EBITDA margin29.1%

Net margin6.4%

Who are its competitors?

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

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Little sign of one

Returns on capital of 9.7% 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.

ROCE9.7%

ROE6.6%

Peer median ROE14.5%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 20.1% and earnings to grow about 41.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.1%

Est. earnings growth+41.7%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +104% while net margin moved -31% 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+104%

Margin effect-31%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.6% is weak
✗ ROE has fallen by 8.4 points over the period

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

39/ 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

100.4x

2Y Median

160.1x

22 monthly readings · mean 155.3x · range 111.4x–192.0x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 37% below its 2y median of 160.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 201% above the peer median of 33.3x.

vs. its own history

Cheap

160.1x median over 22 months · -37%

vs. sector peers

Expensive

33.3x median of 4 peers · +201%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

100.4x

P/B

7.30x

EV/EBITDA

26.1x

PEG

8.18

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 100.4x the stock trades 37% below its own median of 160.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.9% to 6.6% — each rupee of shareholder capital earns less than it did.
Inventory building faster than sales
Inventory is up 161% against revenue growth of 104% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 161% against revenue up 104% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 37% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 201% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 14.9% to 6.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 20% a year✓ 26.9% CAGR
Latest reported year was 26.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹58 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹14,805 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

100.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.30x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.65

Profitable

Profitable on a per-share basis

ROE

6.6%

Weak

Weak capital efficiency

ROCE

9.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

26.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.5%

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

₹58 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹467

P/E (Forward)

55.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.0%

Good

Healthy core-business profitability

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

485.3 / 501.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,016 Cr	₹1,328 Cr	₹1,705 Cr	₹2,077 Cr	+26.9%
EBITDA	₹284 Cr	₹386 Cr	₹491 Cr	₹605 Cr	+28.7%
EBITDA Margin	27.9%	29.1%	28.8%	29.1%	—
PAT (Net Profit)	₹94 Cr	₹83 Cr	₹83 Cr	₹133 Cr	+12.3%
EPS	₹2.98	₹2.63	₹2.78	₹4.18	+12.0%
ROE	14.9%	6.2%	4.5%	6.6%	—
ROCE	10.2%	10.0%	8.4%	9.7%	—
Total Debt	₹857 Cr	₹966 Cr	₹961 Cr	₹1,066 Cr	+7.5%
Free Cash Flow	₹75 Cr	₹114 Cr	₹36 Cr	₹58 Cr	-8.1%

🟢 Revenue has grown at 26.9% a year over 3 years.

🟢 EBITDA has grown at 28.7% a year over 3 years.

🟢 EBITDA Margin has risen from 27.9% to 29.1% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 12.3% a year over 3 years.

🟢 EPS has grown at 12.0% a year over 3 years.

🔴 ROE has fallen from 14.9% to 6.6% over 3 years (-8.4 pts).

🟡 ROCE has held roughly flat at 9.7% over 3 years.

🔴 Total Debt has grown at 7.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 8.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,942 Cr

Total Liabilities

₹1,822 Cr

Total Debt

₹1,066 Cr

Cash & Equivalents

₹91 Cr

Operating Cash Flow

₹519 Cr

Capex

-₹461 Cr

Shareholding (proxy)

Institutional Holding

29.1%

Insider Holding

62.8%

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹584.6

+25.2% vs CMP

Target Range

₹555 – ₹622

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

2 mixed4 general

AGARWALEYE Stock Price and Chart — NSE:AGARWALEYE

TradingView, 19 Sept

Dr. Agarwal's Health Care Ltd | Stock Share Price Live

MarketSmith India, 26 Aug

₹582 - That's What Analysts Think Dr. Agarwal's Health Care Limited (NSE:AGARWALEYE) Is Worth After These Results

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Dr Agarwal’s Health Care Shares Fall 8% on Block Deal

Equitypandit, 12 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Dr Agarwal's Health Care Block Deal: TPG, Temasek likley to sell 11% stake at ₹500/share

CNBC TV18, 11 Aug

Dr Agarwal's Health Care shareholders approve all 7 AGM resolutions

scanx.trade, 21 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong13.8/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak5.8/15

🔴ValuationDemanding6.7/15

🟡RiskModerate5.9/10

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.

This thesis breaks if

✓Revenue growth stays above 20% a year26.9% CAGR
✓EBITDA margin holds above 27%29.1%
✓Interest cover stays above 3x3.8x
✓Free cash flow remains positive₹58 Cr
✓Debt / EBITDA stays below 2x1.8x