Fortis Healthcare Limited

Healthcare — Medical Care Facilities · NSE

₹736.50−₹9.75 (−1.31%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with modest growth. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Fortis Healthcare Limited operates as a healthcare delivery service provider in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees14,649

Annual revenue₹9,048 Cr

How does it make money?

Turns over ₹9,048 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 14,649 employees supports ₹61.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin23.4%

Net margin11.5%

Revenue / employee₹61.8 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.

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

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

CIPLA LTDP/E 31.8x · ROE 9.8%

What is its competitive advantage?Little sign of one

Returns on capital of 11.9% 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.

ROCE11.9%

ROE10.5%

Peer median ROE14.5%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 15.4% and earnings to grow about 33.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.4%

Est. earnings growth+33.5%

Analysts17

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 +46% while net margin moved +22% 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+46%

Margin effect+22%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 53.1x is demanding — it needs sustained high growth to justify
✓ P/E is 33% below its own historical median of 78.8x — cheap by its own standards
✗ P/B of 5.62x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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 good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

53.1x

3Y Median

78.8x

40 monthly readings · mean 74.2x · range 41.4x–108.1x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 33% below its 3y median of 78.8x. 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 52% above the peer median of 34.9x.

vs. its own history

Cheap

78.8x median over 40 months · -33%

vs. sector peers

Expensive

34.9x median of 3 peers · +52%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

53.1x

P/B

5.62x

EV/EBITDA

27.7x

PEG

2.53

Dividend Yield

0.14%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 18.5% to 23.4% over 3 years.
Cash generation is improving
Free cash flow is up 75% over 3 years.
Return on capital is rising
ROCE has improved from 8.4% to 11.9%.
Valuation below its historical average
At 53.1x the stock trades 33% below its own median of 78.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 275% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 84% against revenue growth of 46% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 275% over 3 years, from ₹926 Cr to ₹3,473 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 84% against revenue up 46% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.5% to 23.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 33% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹656 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 84% against revenue up 46%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 52% above the peer median. That premium needs a reason that persists, or it closes.

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

1Revenue growth stays above 10% a year✓ 13.3% CAGR
Latest reported year was 17.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹656 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 5 neutral · 2 weak

Market Cap

₹55,603 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

53.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.62x

Rich

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

EPS (TTM)

₹13.88

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

11.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

17.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.3%

Modest

Slow profit growth

Dividend Yield

0.14%

Modest

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

Free Cash Flow

₹656 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹736.5

P/E (Forward)

32.4x

Improving

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

Operating Margin

16.3%

Good

Healthy core-business profitability

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

0.86

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

804.8 / 869.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,213 Cr	₹6,835 Cr	₹7,724 Cr	₹9,048 Cr	+13.3%
EBITDA	₹1,151 Cr	₹1,293 Cr	₹1,643 Cr	₹2,116 Cr	+22.5%
EBITDA Margin	18.5%	18.9%	21.3%	23.4%	—
PAT (Net Profit)	₹589 Cr	₹599 Cr	₹774 Cr	₹1,042 Cr	+21.0%
EPS	₹7.8	₹7.93	₹10.26	₹13.8	+20.9%
ROE	8.1%	7.8%	8.7%	10.5%	—
ROCE	8.4%	9.5%	9.6%	11.9%	—
Total Debt	₹926 Cr	₹1,155 Cr	₹2,475 Cr	₹3,473 Cr	+55.4%
Free Cash Flow	₹375 Cr	₹158 Cr	₹577 Cr	₹656 Cr	+20.5%

🟢 Revenue has grown at 13.3% a year over 3 years.

🟢 EBITDA has grown at 22.5% a year over 3 years.

🟢 EBITDA Margin has risen from 18.5% to 23.4% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 21.0% a year over 3 years.

🟢 EPS has grown at 20.9% a year over 3 years.

🟢 ROE has risen from 8.1% to 10.5% over 3 years (+2.4 pts).

🟢 ROCE has risen from 8.4% to 11.9% over 3 years (+3.5 pts).

🔴 Total Debt has grown at 55.4% a year over 3 years.

🟢 Free Cash Flow has grown at 20.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15,966 Cr

Total Liabilities

₹5,798 Cr

Total Debt

₹3,473 Cr

Cash & Equivalents

₹407 Cr

Operating Cash Flow

₹1,601 Cr

Capex

-₹945 Cr

Shareholding (proxy)

Institutional Holding

51.5%

Insider Holding

35.2%

Corporate Actions

Next Earnings

13 Nov 2026

Dividend Rate

₹1

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

18 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹1,098.25

+49.1% vs CMP

Target Range

₹850 – ₹1,180

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

3 mixed3 general

Fortis Healthcare Share Price

Upstox, 16 Oct

Fortis Healthcare (NSEI:FORTIS) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

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

Fortis Healthcare Share Price near 52-week low: analysis

Univest, 15 Oct

FORTIS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Fortis Healthcare Shares Decline Over 2%; Stock Among Top Losers on Nifty Midcap 150

Moneycontrol.com, 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.

Fortis Healthcare shares in focus as Supreme Court allows forensic audit to proceed

The Economic Times, 28 Sept

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.
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

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.1/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong9.9/15

🔴ValuationDemanding6.7/15

🟢RiskLow7.5/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year13.3% CAGR
✓EBITDA margin holds above 21%23.4%
✓Free cash flow remains positive₹656 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 9%11.9%