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Check Before You Invest : Chandan Healthcare Ltd

BSE: 0 NSE: CHANDAN ISIN: INE0B2N01016
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Chandan Healthcare Ltd belong to?
Chandan Healthcare Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Chandan Healthcare Ltd a good quality company?
Chandan Healthcare 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 Chandan Healthcare Ltd undervalued or overvalued?
Chandan Healthcare Ltd appears Fair, as its key valuation ratios are in line with 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 3-year
Historic Median
Price to Earnings 27.68 29.81
Price to Book 4.61 5.99
Price to Sales 4.45 4.79
EV to EBITDA 15.78 17.50
Q.4 Is Chandan Healthcare Ltd a good buy now?
Chandan Healthcare 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 Chandan Healthcare Ltd?
Chandan Healthcare Ltd revenue growth is 29.3% for FY-2025, which is above its 3-year CAGR of 21.73%, indicating faster growth.

Q.2 Gross Profit margin of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.8% for FY-2025, which is above its 3-year median of 24.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.53% for FY-2025, which is above its 3-year median of 25.47% indicating increasing margins.

Q.4 Net Profit Margin of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Net Profit Margin is 16.09% for FY-2025, is in line with its 3-year median of 16.04%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 26.8 24.4
Operating Profit Margin (%) 28.53 25.47
Net Profit Margin (%) 16.09 16.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Return on Asset is 15.39%, which is in line with its 3-year historical median of 15.39%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Return on capital employed is 28.38% for FY-2025, which is in line with its 3-year historical median of 28.38%. 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 Chandan Healthcare Ltd?
Chandan Healthcare Ltd Return on equity is 25.75% for FY-2025, which is in line with its 3-year historical median of 25.75%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Cash conversion cycle is 63 days, above its 3-year historical median of 4 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.96 1.17
ROE (%) 25.75 25.75
ROCE (%) 28.38 28.38
Cash Conversion Cycle 63 days 4 days

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

Q.9 Debt to Equity ratio of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Debt-to-Equity ratio is 0.28, which is above the industry average of 0.20, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Chandan Healthcare Ltd?
Chandan Healthcare Ltd Debt to cash flow from operations is -1.78, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Chandan Healthcare Ltd?

Q.1 Promoter shareholding and pledge status of Chandan Healthcare Ltd?
Promoters hold 49.55% of the Chandan Healthcare Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Chandan Healthcare Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Chandan Healthcare Ltd vs industry peers?
Chandan Healthcare Ltd revenue CAGR is 21.73%, compared to the industry median CAGR of 6.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 29.3 6.5
Gross Profit Growth (%) 45.8 12.7
Operating Profit Growth (%) 48 9.1
Net Profit Growth (%) 31.3 6.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.96 0.69
ROE (%) 25.75 10.47
ROCE (%) 28.38 15.25
Cash Conversion Cycle (days) 63 4

Valuation & price assessment

Q.1 Valuation ratios of Chandan Healthcare Ltd vs historical?
The current P/E ratio of 27.68 is lower than its historical median of 29.81, indicating that the stock is trading below its historical average valuation.
Q.2 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 27.68 29.81 41.93
Price to Book 4.61 5.99 4.29
Price to Sales 4.45 4.79 4.73
EV to EBITDA 15.78 17.50 21.44
Q.3 Stock return of Chandan Healthcare Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 29.41% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 29.4%

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