Check Before You Invest : Dr Agarwals Eye Hospital Ltd

Q: Which industry/sub-sector does Dr Agarwals Eye Hospital Ltd belong to?

Dr Agarwals Eye Hospital Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.

Q: Is Dr Agarwals Eye Hospital Ltd a good quality company?

Dr Agarwals Eye Hospital 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: Is Dr Agarwals Eye Hospital Ltd undervalued or overvalued?

Dr Agarwals Eye Hospital Ltd appears Somewhat 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. Price to Earnings, Current: 35.07, Historic Median: 31.16. Price to Book, Current: 7.1, Historic Median: 7.26. Price to Sales, Current: 5.22, Historic Median: 4.40. EV to EBITDA, Current: 16.77, Historic Median: 15.18

Q: Is Dr Agarwals Eye Hospital Ltd a good buy now?

Dr Agarwals Eye Hospital 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

Q: Revenue growth of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd revenue growth is 24.4% for FY-2025, which is above its 5-year CAGR of 17.68%, indicating faster growth.

Q: Gross Profit margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.7% for FY-2025, which is above its 5-year median of 26.2%, indicating increasing margins.

Q: Operating Profit Margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.05% for FY-2025, which is in line with its 5-year median of 28.88% indicating stable margins.

Q: Net Profit Margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Net Profit Margin is 13.76% for FY-2025, is in line with its 5-year median of 13.76%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 27.7, Historic Median: 26.2. Operating Profit Margin (%), Current: 30.05, Historic Median: 28.88. Net Profit Margin (%), Current: 13.76, Historic Median: 13.76

Q: Return on Asset of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Return on Asset is 8.97%, which is below its 5-year historical median of 9.63%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Return on capital employed is 33.26% for FY-2025, which is below its 5-year historical median of 38.59%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Dr Agarwals Eye Hospital Ltd

Snapshot

Q.1 Which industry/sub-sector does Dr Agarwals Eye Hospital Ltd belong to?

Dr Agarwals Eye Hospital Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.

Q.2 Is Dr Agarwals Eye Hospital Ltd a good quality company?

Dr Agarwals Eye Hospital 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 Dr Agarwals Eye Hospital Ltd undervalued or overvalued?

Dr Agarwals Eye Hospital Ltd appears Somewhat 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	35.07	31.16
Price to Book	7.1	7.26
Price to Sales	5.22	4.40
EV to EBITDA	16.77	15.18

Q.4 Is Dr Agarwals Eye Hospital Ltd a good buy now?

Dr Agarwals Eye Hospital 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 Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd revenue growth is 24.4% for FY-2025, which is above its 5-year CAGR of 17.68%, indicating faster growth.

Q.2 Gross Profit margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.7% for FY-2025, which is above its 5-year median of 26.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.05% for FY-2025, which is in line with its 5-year median of 28.88% indicating stable margins.

Q.4 Net Profit Margin of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Net Profit Margin is 13.76% for FY-2025, is in line with its 5-year median of 13.76%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	27.7	26.2
Operating Profit Margin (%)	30.05	28.88
Net Profit Margin (%)	13.76	13.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Return on Asset is 8.97%, which is below its 5-year historical median of 9.63%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Return on capital employed is 33.26% for FY-2025, which is below its 5-year historical median of 38.59%. 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 Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Return on equity is 29.8% for FY-2025, which is below its 5-year historical median of 34.28%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Cash conversion cycle is -18 days, above its 5-year historical median of -26 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)	0.65	0.71
ROE (%)	29.8	34.28
ROCE (%)	33.26	38.59
Cash Conversion Cycle	-18 days	-26 days

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

Q.9 Debt to Equity ratio of Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Debt-to-Equity ratio is 0.46, 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 Dr Agarwals Eye Hospital Ltd?

Dr Agarwals Eye Hospital Ltd Debt to cash flow from operations is 1.02, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dr Agarwals Eye Hospital Ltd?

Q.1 Promoter shareholding and pledge status of Dr Agarwals Eye Hospital Ltd?

Promoters hold 72.67% of the Dr Agarwals Eye Hospital Ltd, with 29.26% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dr Agarwals Eye Hospital Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dr Agarwals Eye Hospital Ltd vs industry peers?

Dr Agarwals Eye Hospital Ltd revenue CAGR is 17.68%, 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 (%)	24.4	1.4
Gross Profit Growth (%)	23.6	18.5
Operating Profit Growth (%)	29.4	15.4
Net Profit Growth (%)	19.6	23.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.65	0.73
ROE (%)	29.8	13.88
ROCE (%)	33.26	17.77
Cash Conversion Cycle (days)	-18.31	1

Valuation & price assessment

Q.1 Stock return of Dr Agarwals Eye Hospital Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 41.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	41.6%	67.6%	52.6%	18.1%

Q.2 Valuation ratios of Dr Agarwals Eye Hospital Ltd vs historical?

The current P/E ratio of 35.07 is higher than its historical median of 31.16, 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	35.07	31.16	37.25
Price to Book	7.1	7.26	3.64
Price to Sales	5.22	4.40	4.21
EV to EBITDA	16.77	15.18	17.66

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Check Before You Invest : Dr Agarwals Eye Hospital Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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