KMC Speciality Hospitals (India) Limited

Healthcare — Medical Care Facilities · NSE

₹159.22+₹2.07 (+1.32%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of KMC Speciality Hospitals (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

KMC Speciality Hospitals (India) Limited provides medical and healthcare services in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees1,695

Annual revenue₹303 Cr

How does it make money?

Turns over ₹303 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 1,695 employees supports ₹17.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.9 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 24.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.2% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +95% while net margin moved -10% 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+95%

Margin effect-10%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 46.6x is demanding — it needs sustained high growth to justify
✗ P/B of 12.30x is a steep premium to book

Quality vs. Valuation

Company Quality

85/ 100

Excellent

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

Valuation

28/ 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

46.6x

Sector Median

34.9x

median of 3 sector peers

⚠️Against its sector it trades 33% above the peer median of 34.9x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

34.9x median of 3 peers · +33%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.2x

PEG

2.27

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 29.0% to 30.8% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 24.6% 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

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹50 Cr to ₹84 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.6% 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 29.0% to 30.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹62 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?

A premium to the sector to defend
It trades 33% above the peer median. That premium needs a reason that persists, or it closes.
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 19% a year✓ 25.0% CAGR
Latest reported year was 37.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 30.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹62 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹2,597 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.30x

Rich

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

EPS (TTM)

₹3.42

Profitable

Profitable on a per-share basis

ROE

22.2%

Strong

Strong capital efficiency

ROCE

24.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

37.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

121.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹62 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

24.7%

Good

Healthy core-business profitability

Net Margin

16.9%

Good

Strong bottom-line conversion

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.03

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

RSI (14)

53.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹155 Cr	₹175 Cr	₹229 Cr	₹303 Cr	+25.0%
EBITDA	₹45 Cr	₹51 Cr	₹60 Cr	₹93 Cr	+27.6%
EBITDA Margin	29.0%	29.0%	26.2%	30.8%	—
PAT (Net Profit)	₹27 Cr	₹30 Cr	₹21 Cr	₹47 Cr	+20.5%
EPS	₹1.64	₹1.86	₹1.31	₹2.87	+20.5%
ROE	23.5%	21.2%	13.0%	22.2%	—
ROCE	23.1%	19.2%	16.5%	24.6%	—
Total Debt	₹50 Cr	₹82 Cr	₹89 Cr	₹84 Cr	+18.8%
Free Cash Flow	-₹12 Cr	-₹37 Cr	-₹6 Cr	₹62 Cr	—

🟢 Revenue has grown at 25.0% a year over 3 years.

🟢 EBITDA has grown at 27.6% a year over 3 years.

🟢 EBITDA Margin has risen from 29.0% to 30.8% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🔴 ROE has fallen from 23.5% to 22.2% over 3 years (-1.3 pts).

🟢 ROCE has risen from 23.1% to 24.6% over 3 years (+1.5 pts).

🔴 Total Debt has grown at 18.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹12 Cr to ₹62 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹332 Cr

Total Liabilities

₹122 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

₹79 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

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 positive2 mixed2 general

KMCSHIL Stock Price and Chart — NSE:KMCSHIL

TradingView, 18 Aug

KMC Speciality Reports Q1 Standalone Net Profit of 166M Rupees vs 75M YoY

Sahi, 14 AugResults

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

KMC Speciality Hospitals (India) standalone net profit rises 119.76% in the June 2026 quarter

Business Standard, 14 AugResults

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

KMC Speciality Hospitals (India) Limited (KMCSHIL) Company Information

Simply Wall Street, 22 Aug

60% Returns In 6 Months: This Multibagger Speciality Hospitals Jumps 8.57% as Q1 FY27 Profit Surges 120% YoY to Rs 16.57 Crore

Dalal Street Investment Journal, 14 AugResults

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

KMC Speciality Hospitals approves ₹519 crore capacity expansion in Trichy and Bengaluru

scanx.trade, 13 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

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, 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.

All 5 tripwires holding · see Key things to watch ↑