Aster DM Healthcare Ltd. (ASTERDM) AI Stock Analysis

• Market Cap: ₹362.43B
• Dividend Yield: 0.72%
• Average Volume (3M): 63.94K
• Price to Earnings (P/E): 110.3
• Beta (1Y): 0.42
• Revenue Growth: -53.19%
• EPS Growth: -94.01%
• Country: IN
• Employees: 14,016
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.70
• Shares Outstanding: 518,121,030
• 10 Day Avg. Volume: 59,786
• 30 Day Avg. Volume: 63,938
• PEG Ratio: <0.01
• Price to Book (P/B): 6.98
• Price to Sales (P/S): 5.78
• P/FCF Ratio: 302.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹750.00
• Price Target Upside: 7.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ₹706.00 ▲(0.93% Upside)

Aster DM Healthcare Ltd. achieves a strong stock score driven by robust technical analysis and attractive valuation. The stock shows positive momentum and undervaluation based on its P/E ratio, while solid financial performance supports this with a few areas of concern regarding revenue volatility and liability management.

Aster DM Healthcare Ltd. Business Overview & Revenue Model

Company Description

Aster DM Healthcare Limited operates as a healthcare company in India and internationally. The company operates through Hospitals, Clinics, Retail Pharmacies, and Other segments. It provides primary, secondary, tertiary, and quaternary healthcare services through 29 hospitals, 120 clinics, 371 retail pharmacies, 114 labs, and patient experience centers under the Aster, Medcare, and Access brands. In addition, it offers healthcare retailing, diagnostic laboratories, digital health, and medical education services. The company was founded in 1987 and is headquartered in Dubai, the United Arab Emirates.

How the Company Makes Money

Aster DM Healthcare generates revenue primarily through its healthcare services, which include inpatient and outpatient treatments, surgical procedures, and diagnostic services. Key revenue streams include patient admissions to hospitals, consultations in clinics, and the sale of pharmaceuticals through its pharmacies. The company also earns income from health insurance partnerships, which drive patient referrals and reimbursements. Additionally, Aster DM Healthcare has established strategic partnerships with various insurance providers and corporations, enhancing its patient base and revenue opportunities. The growth in demand for healthcare services in the regions it operates, combined with its focus on expanding its network and service offerings, contributes significantly to its earnings.

Aster DM Healthcare Ltd. Financial Statement Overview

Summary

Aster DM Healthcare Ltd. demonstrates solid profitability and efficient equity utilization with strong gross and net profit margins. However, revenue volatility and high liabilities indicate potential financial risks. Cash flow stability is positive, but inconsistency remains a concern.

Income Statement

Aster DM Healthcare Ltd. shows a strong gross profit margin, indicating efficient cost management. The net profit margin has improved significantly, driven by a sharp increase in net income. Revenue growth has been volatile, with a decline in the latest period after prior growth, suggesting some instability. EBITDA and EBIT margins are healthy but have shown fluctuations, reflecting operational efficiency with room for improvement.

Balance Sheet

The balance sheet presents a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging. However, the equity ratio indicates a moderate level of equity financing. ROE is strong, reflecting effective use of shareholders' equity. Despite positive aspects, the high total liabilities suggest potential financial risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a strong operating cash flow, which is a positive sign for liquidity. Free cash flow has shown growth, enhancing the company's ability to fund operations and investments. However, the free cash flow to net income ratio suggests some inconsistency, indicating potential volatility in cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.14B	41.38B	36.99B	29.94B	102.53B	86.08B
Gross Profit	23.43B	22.92B	19.76B	15.59B	36.67B	29.06B
EBITDA	7.77B	7.06B	5.33B	4.10B	12.11B	8.07B
Net Income	3.18B	53.78B	1.29B	4.25B	5.26B	1.48B
Balance Sheet
Total Assets	0.00	66.06B	179.91B	148.81B	125.46B	116.43B
Cash, Cash Equivalents and Short-Term Investments	13.81B	13.81B	1.11B	3.96B	3.69B	3.06B
Total Debt	0.00	20.18B	13.84B	57.00B	49.07B	48.04B
Total Liabilities	-36.51B	29.55B	129.61B	100.21B	80.64B	78.09B
Stockholders Equity	36.51B	34.28B	45.60B	44.48B	39.53B	33.72B
Cash Flow
Free Cash Flow	0.00	790.10M	-6.39B	9.86B	7.65B	11.45B
Operating Cash Flow	0.00	4.25B	1.58B	18.34B	13.13B	15.69B
Investing Cash Flow	0.00	60.15B	-8.85B	-9.72B	-5.70B	-3.30B
Financing Cash Flow	0.00	-63.58B	10.53B	-8.17B	-6.85B	-11.16B

Aster DM Healthcare Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 699.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASTERDM, the sentiment is Positive. The current price of 699.5 is above the 20-day moving average (MA) of 641.38, above the 50-day MA of 621.48, and above the 200-day MA of 539.46, indicating a bullish trend. The MACD of 15.95 indicates Negative momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ASTERDM.

Aster DM Healthcare Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASTERDM	77 Outperform	₹362.43B	110.29	―	0.72%	-53.19%	-94.01%
AJANTPHARM	72 Outperform	₹300.91B	32.35	―	2.19%	10.92%	9.76%
MEDANTA	71 Outperform	₹363.85B	68.06	―	0.04%	15.42%	10.66%
GLAND	69 Neutral	₹319.56B	41.49	―	0.93%	-2.34%	6.64%
NH	68 Neutral	₹363.81B	46.11	―	0.25%	12.09%	-2.79%
KIMS	62 Neutral	₹282.42B	75.05	―	―	24.71%	19.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%