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Check Before You Invest : Star Imaging and Path Lab Ltd

BSE: 544482 NSE: ISIN: INE0YG001013
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Star Imaging and Path Lab Ltd belong to?
Star Imaging and Path Lab Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Star Imaging and Path Lab Ltd a good quality company?
Star Imaging and Path Lab 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 Star Imaging and Path Lab Ltd undervalued or overvalued?
Star Imaging and Path Lab 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 8.21 9.31
Price to Book 1.13 1.28
Price to Sales 1.57 1.78
EV to EBITDA 5.49 6.09
Q.4 Is Star Imaging and Path Lab Ltd a good buy now?
Star Imaging and Path Lab 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 Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd revenue growth is 6% for FY-2025, which is below its 3-year CAGR of 6.48%, indicating slower growth.

Q.2 Gross Profit margin of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.6% for FY-2025, which is above its 3-year median of 27.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.3% for FY-2025, which is above its 3-year median of 28.69% indicating increasing margins.

Q.4 Net Profit Margin of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Net Profit Margin is 19.12% for FY-2025, is above its 3-year median of 15.72%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 31.6 27.1
Operating Profit Margin (%) 34.3 28.69
Net Profit Margin (%) 19.12 15.72

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Return on Asset is 17.76%, which is in line with its 3-year historical median of 17.34%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Return on capital employed is 33.71% for FY-2025, which is in line with its 3-year historical median of 33.71%. 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 Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Return on equity is 40.63% for FY-2025, which is in line with its 3-year historical median of 40.63%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Cash conversion cycle is 107 days, above its 3-year historical median of 45 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) 0.93 0.98
ROE (%) 40.63 40.63
ROCE (%) 33.71 33.71
Cash Conversion Cycle 107 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 Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Debt-to-Equity ratio is 0.70, 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 Star Imaging and Path Lab Ltd?
Star Imaging and Path Lab Ltd Debt to cash flow from operations is -5.49, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Star Imaging and Path Lab Ltd?

Q.1 Promoter shareholding and pledge status of Star Imaging and Path Lab Ltd?
Promoters hold 71.92% of the Star Imaging and Path Lab Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Star Imaging and Path Lab Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Star Imaging and Path Lab Ltd vs industry peers?
Star Imaging and Path Lab Ltd revenue CAGR is 6.48%, compared to the industry median CAGR of 6.53%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 6 6.5
Gross Profit Growth (%) 23.8 12.7
Operating Profit Growth (%) 26.1 9.1
Net Profit Growth (%) 33.3 6.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.93 0.69
ROE (%) 40.63 10.47
ROCE (%) 33.71 15.25
Cash Conversion Cycle (days) 107.17 4

Valuation & price assessment

Q.1 Stock return of Star Imaging and Path Lab Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Star Imaging and Path Lab Ltd vs historical?
The current P/E ratio of 8.21 is lower than its historical median of 9.31, indicating that the stock is trading below its historical average valuation.
Q.3 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 8.21 9.31 41.93
Price to Book 1.13 1.28 4.29
Price to Sales 1.57 1.78 4.73
EV to EBITDA 5.49 6.09 21.44

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