Tejnaksh Healthcare Limited

Healthcare — Medical Care Facilities · BSE

₹13.33−₹0.17 (−1.26%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tejnaksh Healthcare Limited provides hospital and healthcare services in India. The company offers health care services through urology clinics, urology hospitals, and dental super specialty clinics.

IndustryMedical Care Facilities

SectorHealthcare

Employees34

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹31.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.1 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 5.9% 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 -8% while net margin moved -21% 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-8%

Margin effect-21%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.7% a year
✗ Profit has declined at 10.0% a year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

66/ 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

22.2x

3Y Median

25.5x

40 monthly readings · mean 24.2x · range 10.4x–40.8x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 3y median of 25.5x. 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 36% below the peer median of 34.9x.

vs. its own history

Fair

25.5x median over 40 months · -13%

vs. sector peers

Cheap

34.9x median of 3 peers · -36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.8x

PEG

2.68

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 96% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 7.7% to 4.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.5% to 5.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 watch

🟡Profit is decliningFinancial
Net profit is down 27% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 38% against revenue up -8% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 27% against revenue up -8% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 96% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 36% 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?

Margins are being competed away
EBITDA margin has fallen from 35.3% to 30.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 38% against revenue up -8%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 7.7% to 4.5%. 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.
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

1EBITDA margin holds above 29%✓ 30.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 5.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 25.5x✓ 22.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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 · 6 neutral · 2 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.84x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.6

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

5.9%

Weak

Low return on total capital employed

Debt/Equity

0.89x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.5%

Modest

Modest growth

Profit Growth (YoY)

8.3%

Modest

Slow profit growth

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

12.6%

Average

Average margins

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

8.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.0 / 13.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹12 Cr	₹13 Cr	₹11 Cr	-2.7%
EBITDA	₹4 Cr	₹4 Cr	₹4 Cr	₹3 Cr	-7.1%
EBITDA Margin	35.3%	37.5%	35.4%	30.8%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-10.0%
EPS	₹0.83	₹0.87	₹1.15	₹0.61	-9.8%
ROE	7.7%	7.5%	9.0%	4.5%	—
ROCE	10.5%	10.1%	12.2%	5.9%	—
Total Debt	₹6 Cr	₹5 Cr	₹1 Cr	₹0 Cr	-66.3%
Free Cash Flow	₹1 Cr	₹3 Cr	-₹0 Cr	₹1 Cr	+0.1%

🔴 Revenue has shrunk at 2.7% a year over 3 years.

🔴 EBITDA has shrunk at 7.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 35.3% to 30.8% over 3 years (-4.5 pts).

🔴 PAT (Net Profit) has shrunk at 10.0% a year over 3 years.

🔴 EPS has shrunk at 9.8% a year over 3 years.

🔴 ROE has fallen from 7.7% to 4.5% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 10.5% to 5.9% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 66.3% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.1% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

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 negative5 general

Tejnaksh Healthcare Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 05 Sept

Tejnaksh Healthcare passes all 4 resolutions at 19th AGM

scanx.trade, 29 Sept

HESTER BIOSCIENCES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

Tejnaksh Healthcare sets Sept 29 AGM for director reappointment

scanx.trade, 04 Sept

Salasar Techno Engineering consolidated net profit declines 41.36% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

MERCURY LAB. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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