Broach Lifecare Hospital Limited

Healthcare — Medical Care Facilities · BSE

₹14.00₹0.00 (0.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Broach Lifecare Hospital Limited engages in the business of hospital and healthcare services in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees19

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹31.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.6 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 2.6% 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 +230% while net margin moved -81% 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+230%

Margin effect-81%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.9% is weak
✗ ROE has fallen by 5.5 points over the period

Quality vs. Valuation

Company Quality

46/ 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

100.0x

2Y Median

17.8x

28 monthly readings · mean 18.4x · range 13.3x–39.1x

Sector Median

34.9x

median of 3 sector peers

⚠️Current valuation is approximately 462% above its 2y median of 17.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 187% above the peer median of 34.9x.

vs. its own history

Expensive

17.8x median over 28 months · +462%

vs. sector peers

Expensive

34.9x median of 3 peers · +187%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 6.4% to 0.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.5% to 2.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 37.4 points, from 46.9% to 9.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 638% against revenue up 230% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 46.9% to 9.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 638% against revenue up 230%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 462% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 6.4% to 0.9%. 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.
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

1Revenue growth stays above 37% a year✓ 48.9% CAGR
Latest reported year was 147.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 2.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 3 neutral · 5 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

100.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.90x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.14

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

147.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-83.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

1.2%

Weak

Assets generate little profit

Operating Margin

-6.0%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.68

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

14.7 / 16.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹3 Cr	₹3 Cr	₹6 Cr	+48.9%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-12.6%
EBITDA Margin	46.9%	40.0%	28.1%	9.5%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-14.4%
EPS	₹0.23	₹1.15	₹0.98	—	—
ROE	6.4%	12.8%	5.7%	0.9%	—
ROCE	5.5%	17.0%	7.9%	2.6%	—
Total Debt	₹6 Cr	—	₹1 Cr	—	—
Free Cash Flow	-₹3 Cr	-₹5 Cr	-₹1 Cr	-₹2 Cr	—

🟢 Revenue has grown at 48.9% a year over 3 years.

🔴 EBITDA has shrunk at 12.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 46.9% to 9.5% over 3 years (-37.4 pts).

🔴 PAT (Net Profit) has shrunk at 14.4% a year over 3 years.

🔴 ROE has fallen from 6.4% to 0.9% over 3 years (-5.5 pts).

🔴 ROCE has fallen from 5.5% to 2.6% over 3 years (-2.9 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.3%

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

2 positive4 general

Broach Lifecare revenue jumps 88% in FY26, net profit falls 84%

scanx.trade, 04 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

BROACH LIFECARE HOSPITAL LIMIT Share Price

Upstox, 05 May

Broach Lifecare revenue up 88.55% to ₹599.47 lakh in FY26

scanx.trade, 30 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Broach Lifecare passes all resolutions at 3rd AGM held on Sep 30

scanx.trade, 30 Sept

Broach Lifecare Hospital IPO Date, Price, GMP, Review, Detail

IndiaIPO, 28 Apr

Critical care - Broach Lifecare Hospital Ltd plans Rs 402 Lacs IPO opens on August 13, 2024

ANI News, 13 Aug

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

StrongFinancial Health

MiddlingGrowth

WeakBusiness Quality · Profitability · Valuation · 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 — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑