Looks Health Services Limited

Healthcare — Medical Care Facilities · BSE

₹7.93−₹0.06 (−0.75%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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. 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 Looks Health Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Looks Health Services Limited provides dental, and cosmetic and non-cosmetic treatment services in India. The company offers skin treatment, hair transplant, laser transplant, and cosmetic surgery services. It is also involved in the sale of supporting medicine.

IndustryMedical Care Facilities

SectorHealthcare

Employees6

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹6.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹6.5 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?Little sign of one

Returns on capital of 0.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +5073% while net margin moved -100% 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+5073%

Margin effect-100%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 0.2% is weak

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

47/ 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

264.3x

1.3Y Median

331.5x

16 monthly readings · mean 354.9x · range 192.5x–495.5x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 1.3y median of 331.5x. 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 657% above the peer median of 34.9x.

vs. its own history

Cheap

331.5x median over 16 months · -20%

vs. sector peers

Expensive

34.9x median of 3 peers · +657%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

42.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 2509.5 points, from 2553.3% to 43.8%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2553.3% to 43.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 657% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 204% a year✓ 272.6% CAGR
Latest reported year was 75.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 43.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 331.5x✓ 264.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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
✓ 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

4 good · 3 neutral · 4 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

264.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

75.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-1.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

3.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.0 / 9.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	—	₹0 Cr	₹0 Cr	+272.6%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	-3.9%
EBITDA Margin	2553.3%	—	-55.7%	43.8%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.15	₹-0.02	₹0.02	₹0.02	—
ROE	-1.1%	-0.1%	0.2%	0.2%	—
ROCE	-0.7%	-0.2%	-2.4%	0.2%	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹1 Cr	₹1 Cr	—

🟢 Revenue has grown at 272.6% a year over 3 years.

🔴 EBITDA has shrunk at 3.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 2553.3% to 43.8% over 3 years (-2509.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.15 to ₹0.02.

🟢 ROE has risen from -1.1% to 0.2% over 3 years (+1.2 pts).

🟡 ROCE has held roughly flat at 0.2% over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.4%

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

6 general

BrightSpring Health Services (BTSG) Lifts 2026 Outlook Again Following Integration Progress And Valuation Debate

Simply Wall Street, 15 Oct

Looks Health Services Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Looks Health Services Limited Receives BSE Approval for Promoter Reclassification Under SEBI Regulation 31A

scanx.trade, 20 Jan

Universal Health Services (UHS) Stock Looks Undervalued As Returns Already Look Strong

Yahoo Finance, 25 Aug

The Best Healthcare Stocks to Buy

Morningstar, 23 Sept

MDRC Stock Price and Chart — BSE:MDRC

TradingView, 07 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

WeakProfitability · 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑