BSE:540975

Stock Analysis Report

Aster DM Healthcare

Executive Summary

Aster DM Healthcare Limited operates as a healthcare company in India and internationally.

Rewards

Trading at 42.2% below its fair value

Earnings are forecast to grow 34.45% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

HealthCare Global Enterprises

BSE:539787

Share Price & News

How has Aster DM Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540975's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

540975

3.8%

IN Healthcare

-0.1%

IN Market


1 Year Return

8.4%

540975

28.8%

IN Healthcare

10.4%

IN Market

Return vs Industry: 540975 underperformed the Indian Healthcare industry which returned 14.5% over the past year.

Return vs Market: 540975 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

540975IndustryMarket
7 Day3.1%3.8%-0.1%
30 Day8.3%15.9%1.8%
90 Day32.1%16.4%3.7%
1 Year8.4%8.4%29.5%28.8%12.4%10.4%
3 Yearn/a11.0%9.5%28.8%21.7%
5 Yearn/a30.3%27.9%35.7%23.4%

Price Volatility Vs. Market

How volatile is Aster DM Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aster DM Healthcare undervalued compared to its fair value and its price relative to the market?

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 540975 (₹161) is trading below our estimate of fair value (₹278.71)

Significantly Below Fair Value: 540975 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540975 is poor value based on its PE Ratio (26.3x) compared to the Healthcare industry average (23.1x).

PE vs Market: 540975 is poor value based on its PE Ratio (26.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 540975 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 540975 is overvalued based on its PB Ratio (2.8x) compared to the IN Healthcare industry average (2.1x).


Next Steps

Future Growth

How is Aster DM Healthcare forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540975's forecast earnings growth (34.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 540975's earnings (34.5% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540975's revenue (11.1% per year) is forecast to grow faster than the Indian market (8.6% per year).

High Growth Revenue: 540975's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540975's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Aster DM Healthcare performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540975 has high quality earnings.

Growing Profit Margin: 540975's current net profit margins (3.7%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 540975's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: 540975's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540975 had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Healthcare industry average (24%).


Return on Equity

High ROE: 540975's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aster DM Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: 540975's short term assets (₹36.7B) exceed its short term liabilities (₹32.2B).

Long Term Liabilities: 540975's short term assets (₹36.7B) do not cover its long term liabilities (₹47.5B).


Debt to Equity History and Analysis

Debt Level: 540975's debt to equity ratio (72.4%) is considered high.

Reducing Debt: 540975's debt to equity ratio has increased from 54.6% to 72.4% over the past 5 years.

Debt Coverage: 540975's debt is well covered by operating cash flow (23.4%).

Interest Coverage: 540975's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 540975 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540975's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is Aster DM Healthcare's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.5%markettop25%2.3%industryaverage0.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540975's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540975's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 540975's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540975's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 540975's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Aster DM Healthcare's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Mandayapurath Moopen (66yo)

5.1yrs

Tenure

₹6,000,000

Compensation

Dr. Mandayapurath Azad Moopen, M.D. is the Chairman of Aster DM Healthcare Ltd and has been its Managing Director since December 1, 2014. Dr. Moopen is Founder of Aster DM Healthcare Limited. He is a gold  ...


Management Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 540975's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 540975's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹2,910,32611 Jul 19
Anoop Moopen
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares25,000
Max Price₹116.43

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.9%.


Management Team

  • Mandayapurath Moopen (66yo)

    Founder

    • Tenure: 5.1yrs
    • Compensation: ₹6.00m
  • Sreenath Reddy (45yo)

    Chief Financial Officer

    • Tenure: 7.2yrs
    • Compensation: ₹21.50m
  • T. Wilson (58yo)

    Group Head of Governance & Corporate Affairs and Executive Director

    • Tenure: 10.8yrs
  • Alisha Moopen (37yo)

    Deputy Managing Director & Executive Director

    • Tenure: 6.3yrs
  • Jobilal Vavachan (48yo)

    CEO of Aster Pharmacy

    • Harish Pillai (51yo)

      CEO of India

      • Tenure: 6.7yrs
    • Malathi Arshanapalai (65yo)

      Group Chief Medical & Quality Officer

      • Tenure: 4.9yrs
    • Puja Aggarwal

      Company Secretary & Compliance Officer

      • Tenure: 1.4yrs
      • Compensation: ₹1.90m
    • Veneeth Purushotaman

      Group Chief Information Officer

      • Tenure: 2yrs
    • K. Kalappa

      Country Head HR of Aster Hospitals & Clinics


      Board Members

      • Suresh Kumar (68yo)

        Non-Executive Independent Director

        • Tenure: 4.3yrs
        • Compensation: ₹1.20m
      • Dan Snyder (64yo)

        Non-Executive Independent Director

        • Tenure: 4.8yrs
        • Compensation: ₹600.00k
      • Mandayapurath Moopen (66yo)

        Founder

        • Tenure: 5.1yrs
        • Compensation: ₹6.00m
      • Maniedath Nambiar (69yo)

        Non-Executive Independent Director

        • Tenure: 4.8yrs
        • Compensation: ₹1.10m
      • T. Wilson (58yo)

        Group Head of Governance & Corporate Affairs and Executive Director

        • Tenure: 10.8yrs
      • Biju Varkkey (54yo)

        Additional Independent Director

        • Tenure: 1.2yrs
        • Compensation: ₹100.00k
      • Alisha Moopen (37yo)

        Deputy Managing Director & Executive Director

        • Tenure: 6.3yrs
      • Anoop Moopen (42yo)

        Non-Executive Director

        • Tenure: 10.8yrs
      • Shamsudheen Bin Mohideen Mammu Haji (56yo)

        Non-Executive Director

        • Tenure: 4.3yrs
      • Ravi Prasad (58yo)

        Non-Executive Independent Director

        • Tenure: 4.8yrs
        • Compensation: ₹1.00m

      Company Information

      Aster DM Healthcare Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Aster DM Healthcare Limited
      • Ticker: 540975
      • Exchange: BSE
      • Founded: 1987
      • Industry: Health Care Facilities
      • Sector: Healthcare
      • Market Cap: ₹82.515b
      • Shares outstanding: 502.22m
      • Website: https://asterdmhealthcare.com

      Number of Employees


      Location

      • Aster DM Healthcare Limited
      • Tower D - Aspect Tower
      • 33rd Floor
      • Dubai
      • United Arab Emirates

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      540975BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2018
      ASTERDMNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2018

      Biography

      Aster DM Healthcare Limited operates as a healthcare company in India and internationally. It provides primary, secondary, tertiary, and quaternary healthcare services through its 24 hospitals, 114 clinics, and 219 retail pharmacies under the Aster, Medcare, and Access brands. The company was founded in 1987 and is headquartered in Dubai, the United Arab Emirates. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 13:19
      End of Day Share Price2020/01/27 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.