Yatharth Hospital & Trauma Care Services Limited

Healthcare — Medical Care Facilities · NSE

₹993.00+₹1.50 (+0.15%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, 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, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Yatharth Hospital & Trauma Care Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Yatharth Hospital & Trauma Care Services Limited, together with its subsidiaries, owns and operates super-specialty hospitals in India.

IndustryMedical Care Facilities

SectorHealthcare

Employees7,440

Annual revenue₹1,196 Cr

How does it make money?

Turns over ₹1,196 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 7,440 employees supports ₹16.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹16.1 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 11.0% 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 is the outlook?

4 analysts covering the stock expect revenue to grow about 36.6% and earnings to grow about 32.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+36.6%

Est. earnings growth+32.1%

Analysts4

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 +130% while net margin moved +16% 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+130%

Margin effect+16%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 52.8x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 49.3x
✗ P/B of 5.38x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

39/ 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

52.8x

3Y Median

49.3x

40 monthly readings · mean 47.3x · range 24.8x–61.4x

Sector Median

34.9x

median of 3 sector peers

🟡Currently trading close to its 3y median of 49.3x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 51% above the peer median of 34.9x.

vs. its own history

Fair

49.3x median over 40 months · +7%

vs. sector peers

Expensive

34.9x median of 3 peers · +51%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.8x

PEG

1.37

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.9% to 9.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.2% to 11.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 237% against revenue up 130% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 240% against revenue up 130% — stock may not be moving.

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?

Sales are being booked faster than collected
Receivables are up 237% against revenue up 130%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 51% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 35.9% to 9.8%. 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
Small 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
3 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 24% a year✓ 32.0% CAGR
Latest reported year was 52.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹112 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹9,568 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.38x

Rich

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

EPS (TTM)

₹18.79

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

52.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹112 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

34.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.2%

Good

Healthy core-business profitability

Net Margin

13.2%

Good

Strong bottom-line conversion

Current Ratio

3.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.00

Market-like

Moves roughly in line with the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1059.5 / 981.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

27.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹520 Cr	₹671 Cr	₹880 Cr	₹1,196 Cr	+32.0%
EBITDA	₹137 Cr	₹196 Cr	₹234 Cr	₹316 Cr	+32.2%
EBITDA Margin	26.2%	29.2%	26.5%	26.4%	—
PAT (Net Profit)	₹66 Cr	₹114 Cr	₹131 Cr	₹175 Cr	+38.7%
EPS	₹7.66	₹14.46	₹14.72	₹18.2	+33.4%
ROE	35.9%	13.1%	8.1%	9.8%	—
ROCE	28.2%	17.5%	10.9%	11.0%	—
Total Debt	₹267 Cr	₹85 Cr	₹12 Cr	₹264 Cr	-0.4%
Free Cash Flow	₹44 Cr	-₹96 Cr	-₹171 Cr	-₹112 Cr	—

🟢 Revenue has grown at 32.0% a year over 3 years.

🟢 EBITDA has grown at 32.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 26.4% over 3 years.

🟢 PAT (Net Profit) has grown at 38.7% a year over 3 years.

🟢 EPS has grown at 33.4% a year over 3 years.

🔴 ROE has fallen from 35.9% to 9.8% over 3 years (-26.1 pts).

🔴 ROCE has fallen from 28.2% to 11.0% over 3 years (-17.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.4% a year).

🔴 Free Cash Flow has turned negative, from ₹44 Cr to -₹112 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,282 Cr

Total Liabilities

₹474 Cr

Cash & Equivalents

₹120 Cr

Operating Cash Flow

₹205 Cr

Capex

-₹317 Cr

Shareholding (proxy)

Institutional Holding

12.8%

Insider Holding

56.9%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,163.75

+17.2% vs CMP

Target Range

₹1,000 – ₹1,350

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

3 mixed3 general

Yatharth Hospital & Trauma Care Services (NSEI:YATHARTH) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Yatharth Hospital Share Price: Fundamentals and Valuation

Univest, 06 Oct

YATHARTH Forecast — Price Target — Prediction for 2027

TradingView, 28 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Yatharth Hospital up 20% in 2 days after Advent's ₹3,150 cr investment deal

Business Standard, 18 Sept

Yatharth Hospital shares jump 5% as Aster, Advent likely eye controlling stake

The Economic Times, 28 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Here's Why We Think Yatharth Hospital & Trauma Care Services (NSE:YATHARTH) Is Well Worth Watching

Simply Wall Street, 05 Oct

Watch Items

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

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability

WeakValuation · Risk

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. 3 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 ↑