Sangani Hospitals Limited

Sector n/a · NSE

₹45.00₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

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

How does it make money?

Turns over ₹107 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.6% 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.

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 +583% while net margin moved -52% 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+583%

Margin effect-52%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

88/ 100

Cheap

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

6.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 8.5% to 12.2%.
Return on capital is rising
ROCE has improved from 11.3% to 14.6%.
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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 3357% over 3 years, from ₹0 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 8.50x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.2 points, from 20.3% to 8.1%.
🔴Receivables growing faster than salesFinancial
Receivables up 2510% against revenue up 583% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 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 20.3% to 8.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 8.50x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 2510% against revenue up 583%. 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
4 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 67% a year✓ 89.7% CAGR
Latest reported year was 404.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹62 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

14.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.50x

High

High leverage

Revenue Growth (YoY)

404.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

93.0%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

29.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

55.9 / 53.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

72.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹16 Cr	₹21 Cr	₹107 Cr	+89.7%
EBITDA	₹3 Cr	₹4 Cr	₹4 Cr	₹9 Cr	+39.7%
EBITDA Margin	20.3%	25.2%	19.2%	8.1%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹3 Cr	₹5 Cr	+48.4%
EPS	₹1.11	₹1.96	₹1.88	—	—
ROE	8.5%	8.1%	7.2%	12.2%	—
ROCE	11.3%	10.8%	9.4%	14.6%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹3 Cr	+225.8%
Free Cash Flow	-₹9 Cr	₹2 Cr	₹1 Cr	-₹0 Cr	—

🟢 Revenue has grown at 89.7% a year over 3 years.

🟢 EBITDA has grown at 39.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.3% to 8.1% over 3 years (-12.2 pts).

🟢 PAT (Net Profit) has grown at 48.4% a year over 3 years.

🟢 ROE has risen from 8.5% to 12.2% over 3 years (+3.7 pts).

🟢 ROCE has risen from 11.3% to 14.6% over 3 years (+3.3 pts).

🔴 Total Debt has grown at 225.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹114 Cr

Total Liabilities

₹63 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹5 Cr

Recent News

6 general

Sangani Hospitals Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 23 Sept

Sangani Hospitals Limited (SANGANI) Leadership & Management Team Analysis

Simply Wall Street, 18 Aug

KMCSHIL Stock Price and Chart — NSE:KMCSHIL

TradingView, 18 Aug

Sangani Hospitals Limited Successfully Listed on NSE EMERGE

ANI News, 22 Aug

Concord Biotech IPO: What does GMP signal about the listing?

Livemint, 17 Aug

Abate AS Industries (BSE:531658) - Stock Analysis

Simply Wall Street, 31 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability · Valuation

WeakFinancial Health · 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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑