Indraprastha Medical Corporation Limited

Healthcare — Medical Care Facilities · NSE

₹322.55+₹1.10 (+0.34%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indraprastha Medical Corporation Limited provides hospital services in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees3,000

Annual revenue₹1,425 Cr

How does it make money?

Turns over ₹1,425 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 3,000 employees supports ₹47.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.5 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.8% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 6.3% and earnings to grow about 8.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.3%

Est. earnings growth+8.4%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +34% while net margin moved +59% 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+34%

Margin effect+59%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

77/ 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

15.7x

3Y Median

25.3x

40 monthly readings · mean 25.1x · range 16.0x–38.7x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 38% below its 3y median of 25.3x. 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 55% below the peer median of 34.9x.

vs. its own history

Cheap

25.3x median over 40 months · -38%

vs. sector peers

Cheap

34.9x median of 3 peers · -55%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.2x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.8% to 20.5% over 3 years.
Return on capital is rising
ROCE has improved from 27.6% to 30.3%.
High return on capital employed
ROCE of 30.3% is the mark of a business that converts capital into profit efficiently.
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

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1386% over 3 years, from ₹2 Cr to ₹37 Cr.
🔴High leverageFinancial
Debt/Equity of 4.98x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 64% against revenue up 34% — 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 30.3% 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.
Margin expansion has further to run
EBITDA margin has risen from 14.8% to 20.5%. 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 38% 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 55% 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?

Leverage amplifies any setback
Debt/Equity of 4.98x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 64% against revenue up 34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 8% a year✓ 10.2% CAGR
Latest reported year was 11.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹108 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹2,957 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.51

Profitable

Profitable on a per-share basis

ROE

24.8%

Strong

Strong capital efficiency

ROCE

30.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.98x

High

High leverage

Revenue Growth (YoY)

11.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.6%

Modest

Slow profit growth

Dividend Yield

1.24%

Modest

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

Free Cash Flow

₹108 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.2x

Improving

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

Operating Margin

16.8%

Good

Healthy core-business profitability

Net Margin

12.3%

Good

Strong bottom-line conversion

Current Ratio

2.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

344.0 / 357.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,065 Cr	₹1,204 Cr	₹1,307 Cr	₹1,425 Cr	+10.2%
EBITDA	₹158 Cr	₹208 Cr	₹264 Cr	₹292 Cr	+22.8%
EBITDA Margin	14.8%	17.3%	20.2%	20.5%	—
PAT (Net Profit)	₹86 Cr	₹124 Cr	₹161 Cr	₹184 Cr	+28.7%
EPS	₹9.4	₹13.52	₹17.56	₹20.03	+28.7%
ROE	22.7%	25.9%	27.0%	24.8%	—
ROCE	27.6%	30.0%	32.6%	30.3%	—
Total Debt	₹2 Cr	₹34 Cr	₹33 Cr	₹37 Cr	+145.9%
Free Cash Flow	₹100 Cr	₹131 Cr	₹120 Cr	₹108 Cr	+2.6%

🟢 Revenue has grown at 10.2% a year over 3 years.

🟢 EBITDA has grown at 22.8% a year over 3 years.

🟢 EBITDA Margin has risen from 14.8% to 20.5% over 3 years (+5.7 pts).

🟢 PAT (Net Profit) has grown at 28.7% a year over 3 years.

🟢 EPS has grown at 28.7% a year over 3 years.

🟢 ROE has risen from 22.7% to 24.8% over 3 years (+2.1 pts).

🟢 ROCE has risen from 27.6% to 30.3% over 3 years (+2.6 pts).

🔴 Total Debt has grown at 145.9% a year over 3 years.

🟢 Free Cash Flow has grown at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹991 Cr

Total Liabilities

₹251 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹167 Cr

Capex

-₹60 Cr

Shareholding (proxy)

Institutional Holding

1.7%

Insider Holding

55.3%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹550

+70.5% vs CMP

Target Range

₹550 – ₹550

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 positive1 mixed3 general

Indraprastha Medical Corporation shares surge 9% after Q1FY27 profit rises 9%, revenue grows 11%

The Economic Times, 07 AugResults

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

Solid Earnings May Not Tell The Whole Story For Indraprastha Medical (NSE:INDRAMEDCO)

Simply Wall Street, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Indraprastha Medical Corporation Ltd. (INDRAMEDCO) 52 Week Low Streak: Extended Breakdown Continues

Univest, 06 Oct

Indraprastha Medical Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Indraprastha Medical Corporation Limited Actuals & Estimates (NSE:INDRAMEDCO)

TradingView, 26 Jun

Indraprastha Medical files FY26 annual report, proposes ₹4 dividend

scanx.trade, 29 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

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

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 ↑