Dr. Agarwal's Eye Hospital Limited

Healthcare — Medical Care Facilities · NSE

₹5,060.00−₹103.00 (−1.99%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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 Dr. Agarwal's Eye Hospital 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 Eye Hospital Limited engages in the provision of eye care and related services in India, Ghana, Uganda, Kenya, Madagascar, Tanzania, Rwanda, Zambia, Mozambique, and Mauritius.

IndustryMedical Care Facilities

SectorHealthcare

Employees1,356

Annual revenue₹470 Cr

How does it make money?

Turns over ₹470 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 1,356 employees supports ₹34.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹34.6 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?Some evidence

ROCE of 16.1% 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 +76% while net margin moved +8% 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+76%

Margin effect+8%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 31.9x already prices in growth
✗ P/B of 7.06x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

53/ 100

Fair

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

31.9x

Sector Median

34.9x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 34.9x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

34.9x median of 3 peers · -9%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.6x

PEG

1.34

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 28.7% to 31.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 32.6% to 20.2% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 40% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 135% against revenue up 76% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 28.7% to 31.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Returns on shareholder capital are falling
ROE has dropped from 32.6% to 20.2%. 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
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.

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

1Revenue growth stays above 16% a year✓ 20.8% CAGR
Latest reported year was 22.3%. 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 stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹47 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 13%✓ 16.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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
✓ 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹2,445 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.9x

Fair

Fairly valued against the generic band

P/B Ratio

7.06x

Rich

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

EPS (TTM)

₹158.78

Profitable

Profitable on a per-share basis

ROE

20.2%

Strong

Strong capital efficiency

ROCE

16.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.94x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹47 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.2%

Good

Healthy core-business profitability

Net Margin

15.3%

Good

Strong bottom-line conversion

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.54

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

35.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹267 Cr	₹317 Cr	₹394 Cr	₹470 Cr	+20.8%
EBITDA	₹77 Cr	₹96 Cr	₹122 Cr	₹149 Cr	+24.7%
EBITDA Margin	28.7%	30.5%	31.1%	31.7%	—
PAT (Net Profit)	₹37 Cr	₹46 Cr	₹55 Cr	₹70 Cr	+23.8%
EPS	₹78.55	₹98.64	₹116.28	₹147.02	+23.2%
ROE	32.6%	29.5%	26.1%	20.2%	—
ROCE	16.8%	16.7%	15.8%	16.1%	—
Total Debt	₹232 Cr	₹268 Cr	₹333 Cr	₹326 Cr	+11.9%
Free Cash Flow	-₹1 Cr	₹18 Cr	-₹9 Cr	₹47 Cr	—

🟢 Revenue has grown at 20.8% a year over 3 years.

🟢 EBITDA has grown at 24.7% a year over 3 years.

🟢 EBITDA Margin has risen from 28.7% to 31.7% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 23.8% a year over 3 years.

🟢 EPS has grown at 23.2% a year over 3 years.

🔴 ROE has fallen from 32.6% to 20.2% over 3 years (-12.3 pts).

🟡 ROCE has held roughly flat at 16.1% over 3 years.

🔴 Total Debt has grown at 11.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹47 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹766 Cr

Total Liabilities

₹420 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹145 Cr

Capex

-₹98 Cr

Shareholding (proxy)

Institutional Holding

1.8%

Insider Holding

82.3%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

02 Sept 2026

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

1 positive2 mixed3 general

Dr. Agarwal's Eye Hospital shares fall 7% after ₹2,065 crore block deal

Dealroom, 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 Eye Hospital standalone net profit rises 35.46% in the June 2026 quarter

Business Standard, 04 AugResults

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

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

MarketSmith India, 26 Aug

AGARWALEYE Stock Price and Chart — NSE:AGARWALEYE

TradingView, 19 Sept

NCLT sanctions Dr Agarwal's eye hospital merger with health care arm

scanx.trade, 05 OctM&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.

Dr. Agarwals Eye Hospital: विलीनीकरणाला NCLT कडून हिरवा कंदील, गुंतवणूकदारांसाठी काय आहेत अपडेट्स?

Whalesbook, 05 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑