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Check Before You Invest : Krishna Institute of Medical Sciences Ltd

BSE: 543308 NSE: KIMS ISIN: INE967H01025
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Krishna Institute of Medical Sciences Ltd belong to?
Krishna Institute of Medical Sciences Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Krishna Institute of Medical Sciences Ltd a good quality company?
Krishna Institute of Medical Sciences Ltd is a good quality company, based on a consistently good 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 Krishna Institute of Medical Sciences Ltd undervalued or overvalued?
Krishna Institute of Medical Sciences 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 99.59 60.15
Price to Book 12.15 8.97
Price to Sales 18.04 13.14
EV to EBITDA 58.37 39.17
Q.4 Is Krishna Institute of Medical Sciences Ltd a good buy now?
Krishna Institute of Medical Sciences Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd revenue growth is 13.3% for FY-2025, which is above its 5-year CAGR of 11.87%, indicating faster growth.

Q.2 Gross Profit margin of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.5% for FY-2025, which is in line with its 5-year median of 32.5%, indicating stable margins.

Q.3 Operating Profit Margin of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.41% for FY-2025, which is below its 5-year median of 32.09% indicating decreasing margins.

Q.4 Net Profit Margin of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Net Profit Margin is 21.88% for FY-2025, is in line with its 5-year median of 21.88%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 32.5 32.5
Operating Profit Margin (%) 30.41 32.09
Net Profit Margin (%) 21.88 21.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Return on Asset is 10.85%, which is below its 5-year historical median of 14.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Return on capital employed is 16.99% for FY-2025, which is below its 5-year historical median of 22.58%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Return on equity is 15.02% for FY-2025, which is below its 5-year historical median of 16.79%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Cash conversion cycle is 18 days, above its 5-year historical median of 3 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.5 0.67
ROE (%) 15.02 16.79
ROCE (%) 16.99 22.58
Cash Conversion Cycle 18 days 3 days

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

Q.9 Debt to Equity ratio of Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Debt-to-Equity ratio is 0.33, 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 Krishna Institute of Medical Sciences Ltd?
Krishna Institute of Medical Sciences Ltd Debt to cash flow from operations is 2.41, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Krishna Institute of Medical Sciences Ltd?

Q.1 Promoter shareholding and pledge status of Krishna Institute of Medical Sciences Ltd?
Promoters hold 34.11% of the Krishna Institute of Medical Sciences Ltd, with 10.26% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Krishna Institute of Medical Sciences Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Krishna Institute of Medical Sciences Ltd vs industry peers?
Krishna Institute of Medical Sciences Ltd revenue CAGR is 11.87%, 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 (%) 13.3 1.4
Gross Profit Growth (%) 19.7 18.5
Operating Profit Growth (%) 15 15.4
Net Profit Growth (%) 28.9 23.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.5 0.73
ROE (%) 15.02 13.88
ROCE (%) 16.99 17.77
Cash Conversion Cycle (days) 17.67 1

Valuation & price assessment

Q.1 Stock return of Krishna Institute of Medical Sciences Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 36.29% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 36.3% 19.1%
Q.2 Valuation ratios of Krishna Institute of Medical Sciences Ltd vs historical?
The current P/E ratio of 99.59 is higher than its historical median of 60.15, 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 99.59 60.15 37.25
Price to Book 12.15 8.97 3.64
Price to Sales 18.04 13.14 4.21
EV to EBITDA 58.37 39.17 17.66

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