Gujarat Kidney And Super Speciality Limited

Healthcare — Medical Care Facilities · NSE

₹187.25−₹2.39 (−1.26%)

DalalBaazaar Score

50 / 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, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Gujarat Kidney And Super Speciality Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Kidney and Super Speciality Limited operates multi-specialty and super-specialty hospitals in India. It provides treatment for Oncology, Neurology, Gastroenterology, Urology, Nephrology, and Physiotherapy.

IndustryMedical Care Facilities

SectorHealthcare

Employees194

Annual revenue₹61 Cr

How does it make money?

Turns over ₹61 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 194 employees supports ₹31.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.2 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 8.5% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved +231% 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-29%

Margin effect+231%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 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

73.7x

1.0Y Median

88.1x

12 monthly readings · mean 89.6x · range 63.5x–115.2x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 16% below its 1.0y median of 88.1x. 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 111% above the peer median of 34.9x.

vs. its own history

Fair

88.1x median over 12 months · -16%

vs. sector peers

Expensive

34.9x median of 3 peers · +111%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

234.7x

PEG

2.26

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 30.2% to 6.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.8% to 8.5% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.4 points, from 20.9% to 10.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 183% against revenue up -29% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 200% against revenue up -29% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 25% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹98 Cr in the latest year.

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 20.9% to 10.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 183% against revenue up -29%. 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 111% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 30.2% to 6.1%. 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.

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

1EBITDA margin holds above 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹98 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 8.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 88.1x✓ 73.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

3 good · 4 neutral · 4 weak

Market Cap

₹1,476 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

73.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.62x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.54

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

8.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

124.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-22.4%

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

-₹98 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

20.2%

Good

Healthy core-business profitability

Net Margin

15.7%

Good

Strong bottom-line conversion

Current Ratio

3.76

Comfortable

Healthy short-term liquidity

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

183.3 / 167.6

Bullish alignment (short > long)

RSI (14)

57.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹86 Cr	₹103 Cr	₹37 Cr	₹61 Cr	-10.9%
EBITDA	₹18 Cr	₹22 Cr	₹13 Cr	₹6 Cr	-29.2%
EBITDA Margin	20.9%	21.3%	35.9%	10.5%	—
PAT (Net Profit)	₹7 Cr	₹10 Cr	₹9 Cr	₹15 Cr	+32.7%
EPS	₹0.84	₹1.23	₹1.19	₹2.49	+43.6%
ROE	30.2%	43.5%	36.3%	6.1%	—
ROCE	28.8%	33.8%	39.8%	8.5%	—
Total Debt	₹23 Cr	₹27 Cr	₹8 Cr	₹29 Cr	+7.9%
Free Cash Flow	₹0 Cr	₹1 Cr	-₹5 Cr	-₹98 Cr	—

🔴 Revenue has shrunk at 10.9% a year over 3 years.

🔴 EBITDA has shrunk at 29.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.9% to 10.5% over 3 years (-10.4 pts).

🟢 PAT (Net Profit) has grown at 32.7% a year over 3 years.

🟢 EPS has grown at 43.6% a year over 3 years.

🔴 ROE has fallen from 30.2% to 6.1% over 3 years (-24.1 pts).

🔴 ROCE has fallen from 28.8% to 8.5% over 3 years (-20.3 pts).

🔴 Total Debt has grown at 7.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹98 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹298 Cr

Total Liabilities

₹43 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹94 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.8%

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

1 mixed5 general

Is Gujarat Kidney and Super Speciality the Best Stock in Its Sector? A Look at the Numbers

Univest, 25 Sept

Gujarat Kidney & Super Speciality Ltd | Stock Share Price Live

MarketSmith India, 14 May

GKSL Stock Price and Chart — NSE:GKSL

TradingView, 30 Dec

Gujarat Kidney Shares Rise on Market Debut

Rediff MoneyWiz, 30 DecPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Gujarat Kidney & Super Speciality IPO Review – Financials, Strengths & Risk Factors

Liquide Blog, 23 Dec

Gujarat Kidney shares list at 6% premium over IPO price

The Economic Times, 30 Dec

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Profitability · Valuation

WeakBusiness Quality · 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. 4 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 ↑