Asarfi Hospital Limited

Healthcare — Medical Care Facilities · BSE

₹192.50+₹6.50 (+3.49%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Asarfi Hospital Limited operates a hospital under the Asarfi Hospital name in India. The company offers healthcare services that focus on prevention, diagnosis, treatment, and rehabilitation. Asarfi Hospital Limited was incorporated in 2005 and is based in Dhanbad, India.

IndustryMedical Care Facilities

SectorHealthcare

Annual revenue₹172 Cr

How does it make money?

Turns over ₹172 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation.

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?Some evidence

ROCE of 18.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +144% while net margin moved -15% 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+144%

Margin effect-15%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.38 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

21.3x

3Y Median

29.4x

40 monthly readings · mean 31.0x · range 15.0x–60.5x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 3y median of 29.4x. 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 39% below the peer median of 34.9x.

vs. its own history

Cheap

29.4x median over 40 months · -28%

vs. sector peers

Cheap

34.9x median of 3 peers · -39%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

0.77

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 15.9% to 18.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 235% over 3 years, from ₹17 Cr to ₹58 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 220% against revenue up 144% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 28% 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.
Cheaper than its peers
It trades 39% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Sales are being booked faster than collected
Receivables are up 220% against revenue up 144%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
2 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 26% a year✓ 34.5% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹379 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.05

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

18.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.5%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

8.9%

Good

Assets are working hard

Operating Margin

13.3%

Average

Average margins

Net Margin

9.6%

Average

Average bottom-line conversion

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.38

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

184.7 / 201.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹71 Cr	₹84 Cr	₹121 Cr	₹172 Cr	+34.5%
EBITDA	₹16 Cr	₹17 Cr	₹29 Cr	₹38 Cr	+34.1%
EBITDA Margin	22.1%	20.5%	24.0%	21.9%	—
PAT (Net Profit)	₹8 Cr	₹4 Cr	₹11 Cr	₹17 Cr	+27.6%
EPS	₹4.07	₹2.31	₹5.37	₹8.47	+27.6%
ROE	19.2%	5.9%	13.1%	17.1%	—
ROCE	15.9%	7.8%	14.9%	18.2%	—
Total Debt	₹17 Cr	₹32 Cr	₹49 Cr	₹58 Cr	+49.6%
Free Cash Flow	-₹22 Cr	-₹20 Cr	-₹16 Cr	₹0 Cr	—

🟢 Revenue has grown at 34.5% a year over 3 years.

🟢 EBITDA has grown at 34.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 21.9% over 3 years.

🟢 PAT (Net Profit) has grown at 27.6% a year over 3 years.

🟢 EPS has grown at 27.6% a year over 3 years.

🔴 ROE has fallen from 19.2% to 17.1% over 3 years (-2.1 pts).

🟢 ROCE has risen from 15.9% to 18.2% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 49.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹22 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹193 Cr

Total Liabilities

₹96 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹18 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

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

6 general

Asarfi Hospital shareholders approve NSE listing, BSE migration at AGM

scanx.trade, 18 Sept

Asarfi Hospital board approves BSE Main Board migration and NSE listing

scanx.trade, 25 Aug

GAUDIUM IVF AND WOMEN HEALTH LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 03 Mar

Asarfi Hospital share price opens at 90% premium. Details here

Livemint, 26 Jul

Asarfi Hospital (BSE:543943) - Stock Analysis

Simply Wall Street, 27 Jul

ASARFI HOSPITAL LIMITED Share Price

Upstox, 15 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑