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Check Before You Invest : Aspira Pathlab & Diagnostics Ltd

BSE: 540788 NSE: ISIN: INE500C01017
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Aspira Pathlab & Diagnostics Ltd belong to?
Aspira Pathlab & Diagnostics Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Aspira Pathlab & Diagnostics Ltd a good quality company?
Aspira Pathlab & Diagnostics Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aspira Pathlab & Diagnostics Ltd undervalued or overvalued?
Aspira Pathlab & Diagnostics Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 76.01 19.22
Price to Book 8.66 4.33
Price to Sales 4.6 2.72
EV to EBITDA 32.99 13.03
Q.4 Is Aspira Pathlab & Diagnostics Ltd a good buy now?
Aspira Pathlab & Diagnostics Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd revenue growth is 66.7% for FY-2025, which is above its 5-year CAGR of 21.18%, indicating faster growth.

Q.2 Gross Profit margin of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.2% for FY-2025, which is in line with its 5-year median of 16.2%, indicating stable margins.

Q.3 Operating Profit Margin of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.17% for FY-2025, which is in line with its 5-year median of 16.17% indicating stable margins.

Q.4 Net Profit Margin of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Net Profit Margin is 9.42% for FY-2025, is in line with its 5-year median of 9.08%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.2 16.2
Operating Profit Margin (%) 16.17 16.17
Net Profit Margin (%) 9.42 9.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Return on Asset is 12.86%, which is above its 5-year historical median of 10.58%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Return on capital employed is 19.64% for FY-2025, which is in line with its 5-year historical median of 19.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Return on equity is 18.54% for FY-2025, which is in line with its 5-year historical median of 18.54%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Cash conversion cycle is 29 days, below its 5-year historical median of 45 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.37 1.16
ROE (%) 18.54 18.54
ROCE (%) 19.64 19.64
Cash Conversion Cycle 29 days 45 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Debt-to-Equity ratio is 0.10, which is lower the industry average of 0.20, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aspira Pathlab & Diagnostics Ltd?
Aspira Pathlab & Diagnostics Ltd Debt to cash flow from operations is 0.64, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aspira Pathlab & Diagnostics Ltd?

Q.1 Promoter shareholding and pledge status of Aspira Pathlab & Diagnostics Ltd?
Promoters hold 18.39% of the Aspira Pathlab & Diagnostics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aspira Pathlab & Diagnostics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aspira Pathlab & Diagnostics Ltd vs industry peers?
Aspira Pathlab & Diagnostics Ltd revenue CAGR is 21.18%, compared to the industry median CAGR of 1.38%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 66.7 1.4
Gross Profit Growth (%) 0 18.5
Operating Profit Growth (%) 0 15.4
Net Profit Growth (%) 0 23.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.37 0.73
ROE (%) 18.54 13.88
ROCE (%) 19.64 17.77
Cash Conversion Cycle (days) 29.29 1

Valuation & price assessment

Q.1 Stock return of Aspira Pathlab & Diagnostics Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 29.76% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 29.8% 47.2% 88%
Q.2 Valuation ratios of Aspira Pathlab & Diagnostics Ltd vs historical?
The current P/E ratio of 76.01 is higher than its historical median of 19.22, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 76.01 19.22 37.25
Price to Book 8.66 4.33 3.64
Price to Sales 4.6 2.72 4.21
EV to EBITDA 32.99 13.03 17.66

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