Unihealth Hospitals Limited

Sector n/a · NSE

₹121.00−₹3.30 (−2.65%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

The 60-second version of Unihealth 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 ₹132 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 21.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +200% while net margin moved +12% 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+200%

Margin effect+12%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

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

3.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 35.7% to 44.1% over 3 years.
Debt is being paid down
Total debt is down 17% over 3 years.
High return on capital employed
ROCE of 21.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 27.9% to 18.8% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 350% against revenue up 200% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹26 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.5% 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 35.7% to 44.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Sales are being booked faster than collected
Receivables are up 350% against revenue up 200%. 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 27.9% to 18.8%. 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

1Revenue growth stays above 33% a year✓ 44.3% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 44.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹190 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

18.8%

Strong

Strong capital efficiency

ROCE

21.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

82.9%

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

-₹26 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

80.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

19.6%

Good

Strong bottom-line conversion

Current Ratio

5.33

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

592.3 / 669.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹44 Cr	₹49 Cr	₹99 Cr	₹132 Cr	+44.3%
EBITDA	₹16 Cr	₹18 Cr	₹39 Cr	₹58 Cr	+54.8%
EBITDA Margin	35.7%	37.2%	39.9%	44.1%	—
PAT (Net Profit)	₹8 Cr	₹10 Cr	₹14 Cr	₹26 Cr	+49.8%
EPS	₹4.99	₹7.67	₹9.17	—	—
ROE	27.9%	11.9%	13.9%	18.8%	—
ROCE	20.6%	11.9%	21.4%	21.5%	—
Total Debt	₹39 Cr	₹25 Cr	₹22 Cr	₹33 Cr	-5.9%
Free Cash Flow	-₹1 Cr	₹2 Cr	-₹13 Cr	-₹26 Cr	—

🟢 Revenue has grown at 44.3% a year over 3 years.

🟢 EBITDA has grown at 54.8% a year over 3 years.

🟢 EBITDA Margin has risen from 35.7% to 44.1% over 3 years (+8.3 pts).

🟢 PAT (Net Profit) has grown at 49.8% a year over 3 years.

🔴 ROE has fallen from 27.9% to 18.8% over 3 years (-9.1 pts).

🟡 ROCE has held roughly flat at 21.5% over 3 years.

🟢 Total Debt has shrunk at 5.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹254 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹31 Cr

Recent News

1 positive1 mixed4 general

Unihealth Hospitals Share Price Falls 10.67% | Micro Cap

Univest, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Unihealth Hospitals Limited's (NSE:UNIHEALTH) Stock Is Going Strong: Is the Market Following Fundamentals?

Simply Wall Street, 03 Feb

Unihealth FY26 profit jumps 83% on 35% revenue growth

scanx.trade, 27 SeptResults

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

Healthcare stock Unihealth Hospitals hits 5% upper circuit; here's why

Livemint, 06 Jul

Here's Why We Think Unihealth Hospitals (NSE:UNIHEALTH) Might Deserve Your Attention Today

Webull, 03 Oct

200-Bed Hospital to Commence Operations: This Healthcare Stock Rises 4.70% as UniHealth Announces Nashik Hospital Launch

Dalal Street Investment Journal, 19 Aug

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 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 · Financial Health · Growth · Profitability

MiddlingValuation

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

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