Aster DM Healthcare Ltd. (ASTERDM) AI Stock Analysis

• Market Cap: ₹317.89B
• Dividend Yield: 0.84%
• Average Volume (3M): 57.99K
• Price to Earnings (P/E): 94.0
• Beta (1Y): 0.34
• Revenue Growth: -36.14%
• EPS Growth: -93.99%
• Country: IN
• Employees: 14,016
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.15
• Shares Outstanding: 518,121,030
• 10 Day Avg. Volume: 86,592
• 30 Day Avg. Volume: 57,995
• PEG Ratio: 0.52
• Price to Book (P/B): 122.33
• Price to Sales (P/S): 101.33
• P/FCF Ratio: 5.31K
• 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: 21.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹766.00 ▲(24.51% Upside)

Aster DM Healthcare Ltd. has a solid financial foundation with strong profitability and effective equity utilization. However, the high P/E ratio suggests overvaluation, and the stock's technical indicators point to potential overbought conditions. Despite these concerns, the company's financial stability and positive cash flow are strengths.

Positive Factors

Strong Profitability

Strong profitability and effective equity utilization indicate robust operational efficiency, supporting sustainable growth and investment capacity.

Cash Flow Stability

Strong operating cash flow enhances liquidity, ensuring the company can fund operations and strategic investments, supporting long-term stability.

Strategic Partnerships

Strategic partnerships expand the patient base and revenue opportunities, strengthening market position and driving sustainable growth.

Negative Factors

Revenue Volatility

Volatile revenue growth suggests instability in market demand or operational execution, potentially impacting long-term financial predictability.

High Liabilities

High liabilities can strain financial flexibility and increase risk, necessitating careful management to maintain financial health and stability.

Cash Flow Inconsistency

Inconsistent cash flow generation relative to earnings can challenge liquidity management and investment planning, affecting long-term growth.

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 a solid financial position with strong profitability and effective equity utilization. While revenue growth and profit margins reflect operational strengths, volatility in financial performance suggests potential risks. The balance sheet shows moderate leverage, and cash flow stability is a positive aspect, though there are areas for improvement in cash flow consistency.

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: Negative
• Last Price: 615.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASTERDM, the sentiment is Negative. The current price of 615.2 is above the 20-day moving average (MA) of 610.07, below the 50-day MA of 642.93, and above the 200-day MA of 600.47, indicating a neutral trend. The MACD of -6.32 indicates Negative momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
AJANTPHARM	72 Outperform	₹345.78B	35.51	―	1.04%	10.74%	11.91%
NH	71 Outperform	₹387.61B	45.64	―	0.24%	14.72%	8.37%
KIMS	65 Neutral	₹248.11B	73.84	―	―	25.74%	1.41%
MEDANTA	65 Neutral	₹316.29B	56.27	―	0.04%	15.78%	15.01%
GLAND	63 Neutral	₹276.91B	35.03	―	1.07%	-1.51%	14.27%
ASTERDM	62 Neutral	₹317.89B	94.00	―	0.84%	-36.14%	-93.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aster DM Healthcare Ltd. Corporate Events

Aster DM Healthcare Moves to Full Ownership of Prerana Hospital

Aster DM Healthcare has increased its stake in subsidiary Prerana Hospital Limited from 87% to 98.92% through a cash acquisition of an additional 11.94% equity for INR 38.36 crore, with the remaining 1.08% slated to be acquired by December 31, 2026, at which point Prerana will become a wholly owned subsidiary. The move, which does not involve any related-party transactions and requires no regulatory approvals, underscores Aster DM Healthcare’s strategy of consolidating full control over its hospital assets, potentially streamlining decision-making, improving operational integration, and enhancing its presence in the healthcare market through the fully owned Prerana Hospital business.

Aster DM Clarifies Status of ₹125 Crore Kottakkal Healthcare Project

Aster DM Healthcare has issued a clarification regarding its recently announced ₹125 crore healthcare development project in Kottakkal, Kerala, noting that the proposal relates to a planned investment to expand its medical infrastructure in the region. The company states that the project is still subject to requisite corporate approvals, including sign-off from its Board of Directors and that of subsidiary Malabar Institute of Medical Sciences Limited, and has advised investors and market participants that further disclosures will be made once these approvals are obtained, underscoring its emphasis on transparent communication with stakeholders and compliance with listing regulations.

Aster DM Healthcare Engages with Investors in Upcoming Conferences

Aster DM Healthcare Ltd. has announced its participation in upcoming investor conferences, as part of its ongoing engagement with analysts and institutional investors. These meetings, scheduled for late November 2025, will be conducted virtually, allowing the company to discuss its strategic initiatives and market opportunities without disclosing any unpublished price-sensitive information.

Aster DM Healthcare to Engage in Investor Conferences

Aster DM Healthcare Ltd. announced its participation in upcoming investor conferences, including the J P Morgan India Emerging Opportunities Fund event. The company will engage with investors through virtual meetings, ensuring no unpublished price-sensitive information is disclosed. This participation highlights Aster DM Healthcare’s proactive approach to engaging with stakeholders and maintaining transparency in its operations.

Aster DM Healthcare Announces Director Cessation

Aster DM Healthcare Ltd. announced the cessation of Mr. Emmanuel David Gootam as a Non-Executive Independent Director, effective from the end of the day on November 9, 2025. His departure marks the completion of his first term, and he will no longer serve on the company’s Audit, Nomination and Remuneration, and Medical Excellence Committees. This change is part of the company’s compliance with the SEBI Listing Regulations, which may impact the company’s governance structure and committee dynamics.