Arvaya Healthcare Limited

Healthcare — Medical Distribution · BSE

₹98.85−₹2.00 (−1.98%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Arvaya Healthcare Limited provides healthcare services spanning hospital care, diagnostics, wellness, healthcare technology, and health management.

IndustryMedical Distribution

SectorHealthcare

Annual revenue₹8 Cr

How does it make money?

Turns over ₹8 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.4% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +2432% while net margin moved -106% 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+2432%

Margin effect-106%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

19/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

216.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -60.1% to 31.7% over 3 years.
Return on equity is rising
ROE has improved from -12.7% to 1.2%.
Return on capital is rising
ROCE has improved from -12.5% to 1.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 64104% over 3 years, from ₹0 Cr to ₹49 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 5220% against revenue up 2432% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 22.0x to 3.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1501% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -60.1% to 31.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 20.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Size brings its own risk
Micro 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 145% a year✓ 193.6% CAGR
Latest reported year was 2655.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 20.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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

₹475 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-0.29

Loss-making

Negative earnings per share — the business is losing money

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

2655.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

420.9%

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

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.17

Adequate

Adequate, but no real cushion

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

116.6 / 117.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹8 Cr	+193.6%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	—
EBITDA Margin	-60.1%	-76.2%	-121.5%	31.7%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-1.48	₹-0.39	₹0.45	₹0.69	—
ROE	-12.7%	-3.5%	3.9%	1.2%	—
ROCE	-12.5%	-3.3%	5.7%	1.4%	—
Total Debt	₹0 Cr	₹0 Cr	—	₹49 Cr	+762.7%
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹8 Cr	—

🟢 Revenue has grown at 193.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -60.1% to 31.7% over 3 years (+91.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-1.48 to ₹0.69.

🟢 ROE has risen from -12.7% to 1.2% over 3 years (+13.8 pts).

🟢 ROCE has risen from -12.5% to 1.4% over 3 years (+13.9 pts).

🔴 Total Debt has grown at 762.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹141 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.4%

Corporate Actions

Ex-Dividend Date

25 Oct 1995

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

3 mixed3 general

Arvaya Healthcare board to consider 38.7 lakh share allotment

scanx.trade, 17 Oct

Arvaya Healthcare reports standalone net loss of Rs 0.89 crore in the June 2026 quarter

Business Standard, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bijoy Hans Ltd changes name to Arvaya Healthcare Ltd

scanx.trade, 08 Jul

Arvaya Healthcare shareholders approve Sushodha Institute acquisition

scanx.trade, 15 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.

Arvaya Healthcare 41st AGM passes all five resolutions unanimously

scanx.trade, 22 Sept

Bijoy Hans Limited entered into a Share Purchase Agreement to acquire Health Secure Hospital Care & Solutions Private Limited from group of shareholders for approximately INR 840 million.

marketscreener.com, 03 NovM&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.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability

WeakValuation · 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. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑