NSEI:ASTERDM

Stock Analysis Report

Aster DM Healthcare

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

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: ASTERDM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

ASTERDM

1.5%

IN Healthcare

-0.07%

IN Market


1 Year Return

12.5%

ASTERDM

33.0%

IN Healthcare

9.5%

IN Market

Return vs Industry: ASTERDM underperformed the Indian Healthcare industry which returned 33% over the past year.

Return vs Market: ASTERDM exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

ASTERDMIndustryMarket
7 Day-1.3%1.5%-0.07%
30 Day4.0%3.3%-0.7%
90 Day17.4%14.5%3.2%
1 Year12.5%12.5%33.7%33.0%11.5%9.5%
3 Yearn/a10.1%8.7%23.6%16.7%
5 Yearn/a23.6%21.6%35.4%22.9%

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

Valuation

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

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASTERDM (₹170.9) is trading below our estimate of fair value (₹272.12)

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


Price To Earnings Ratio

PE vs Industry: ASTERDM is poor value based on its PE Ratio (24.2x) compared to the Healthcare industry average (21.6x).

PE vs Market: ASTERDM is poor value based on its PE Ratio (24.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ASTERDM is overvalued based on its PB Ratio (3x) 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 8 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTERDM's forecast earnings growth (30% per year) is above the savings rate (6.5%).

Earnings vs Market: ASTERDM's earnings (30% per year) are forecast to grow faster than the Indian market (20.5% per year).

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

Revenue vs Market: ASTERDM's revenue (11.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ASTERDM's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASTERDM's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

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

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASTERDM has high quality earnings.

Growing Profit Margin: ASTERDM's current net profit margins (4.1%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: ASTERDM's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: ASTERDM's earnings growth over the past year (13%) is below its 5-year average (28.2% per year).

Earnings vs Industry: ASTERDM earnings growth over the past year (13%) underperformed the Healthcare industry 26.2%.


Return on Equity

High ROE: ASTERDM's Return on Equity (11.3%) 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: ASTERDM's short term assets (₹36.7B) exceed its short term liabilities (₹32.2B).

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


Debt to Equity History and Analysis

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

Reducing Debt: ASTERDM's debt to equity ratio has increased from 51.3% to 72.4% over the past 5 years.

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

Interest Coverage: ASTERDM's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASTERDM'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

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

High Dividend: Unable to evaluate ASTERDM'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 ASTERDM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASTERDM'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 ASTERDM's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Mandayapurath Moopen (66yo)

5.2yrs

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Mandayapurath Moopen
Founder5.2yrs₹6.00m0.40% 347.5m
Sreenath Reddy
Group Chief Financial Officer7.3yrs₹21.50m0.026% 22.0m
Veneeth Purushotaman
Group Chief Information Officer2.1yrsno datano data
Puja Aggarwal
Company Secretary & Compliance Officer1.5yrs₹1.90mno data
T. Wilson
Group Head of Governance & Corporate Affairs and Executive Director10.8yrsno data0.55% 467.8m
Alisha Moopen
Deputy Managing Director & Executive Director6.4yrsno data0.023% 20.0m
Jobilal Vavachan
CEO of Aster Pharmacy0yrsno data0.036% 31.1m
Harish Pillai
CEO of India6.8yrsno data0.032% 27.7m
Malathi Arshanapalai
Group Chief Medical & Quality Officer5yrsno datano data
K. Kalappa
Country Head HR of Aster Hospitals & Clinics0yrsno datano data

5.1yrs

Average Tenure

51yo

Average Age

Experienced Management: ASTERDM's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mandayapurath Moopen
Founder5.2yrs₹6.00m0.40% 347.5m
T. Wilson
Group Head of Governance & Corporate Affairs and Executive Director10.8yrsno data0.55% 467.8m
Alisha Moopen
Deputy Managing Director & Executive Director6.4yrsno data0.023% 20.0m
Daniel Mintz
Non-Executive Director3.3yrsno datano data
Suresh Kumar
Non-Executive Independent Director4.4yrs₹1.20mno data
Daniel Snyder
Non-Executive Independent Director4.8yrs₹600.00kno data
Biju Varkkey
Additional Independent Director1.3yrs₹100.00kno data
Anoop Moopen
Non-Executive Director10.8yrsno data0.20% 175.2m
Shamsudheen Bin Mohideen Mammu Haji
Non-Executive Director4.4yrsno data1.14% 977.2m
Ravi Prasad
Non-Executive Independent Director4.8yrs₹1.00mno data

4.8yrs

Average Tenure

58yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Aster DM Healthcare Limited
  • Ticker: ASTERDM
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: ₹85.830b
  • 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 Analysis2020/02/23 13:29
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.