Aster DM Healthcare Ltd. (ASTERDM) AI Stock Analysis

• Market Cap: ₹330.54B
• Dividend Yield: 0.84%
• Average Volume (3M): 57.99K
• Price to Earnings (P/E): 99.7
• Beta (1Y): 0.41
• Revenue Growth: -36.14%
• EPS Growth: -93.99%
• Country: IN
• Employees: 14,016
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.61
• Revenue Forecast (FY): ₹47.09B

• Rating: 62 Neutral
• Price Target: ₹682.00 ▲(10.86% Upside)
• Action: Downgraded Date: 10/23/25
• Date: Action: Downgraded 10/23/25

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

Operating cash flow & FCF growth

Consistently strong operating cash flow and growing free cash flow improve the company’s ability to self-fund capex, expanded service capacity and working capital for hospitals, clinics and pharmacies. Durable cash generation reduces reliance on external financing and supports steady network investment and operations over months.

High gross and improving net margins

Robust gross margins and materially improved net margins indicate effective cost control and pricing power across multi‑specialty hospitals, diagnostics and pharmacy channels. Margin strength is a structural advantage that supports reinvestment, resilience to cost shocks and sustainable profitability in the medium term.

Balanced leverage with strong ROE

A moderate debt-to-equity posture combined with strong return on equity suggests management is using leverage prudently while extracting solid returns from equity. This balance supports disciplined growth, preserves financial flexibility and underpins shareholder value retention over a 2–6 month horizon.

Negative Factors

Revenue volatility and recent decline

Volatile revenue trends and a latest-period decline weaken predictability of utilization and cash flows for hospitals and clinics. Structural demand swings or pricing/reimbursement pressures can impair capacity planning, utilization-driven margins and short-to-medium term investment timing across the network.

Sharp EPS contraction

A near-100% year-over-year EPS drop signals material earnings volatility that may reflect non-recurring items, margin compression or operational setbacks. Such EPS swings reduce visibility on recurring profitability, complicate capital allocation and could constrain dividends or raise financing needs if sustained.

High total liabilities / leverage risk

Elevated total liabilities increase refinancing, interest and liquidity risk for a capital-intensive healthcare operator. If operating cash flow fluctuates, higher liabilities could limit strategic investments, slow expansion or force more expensive funding, raising medium-term financial vulnerability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 615.20
• 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 615.2 is above the 20-day moving average (MA) of 592.98, above the 50-day MA of 594.43, and below the 200-day MA of 615.28, indicating a bullish trend. The MACD of 16.09 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 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
AJANTPHARM	72 Outperform	₹368.64B	36.33	―	1.04%	10.74%	11.91%
NH	71 Outperform	₹372.23B	47.57	―	0.24%	14.72%	8.37%
KIMS	65 Neutral	₹293.46B	96.63	―	―	25.74%	1.41%
MEDANTA	65 Neutral	₹309.16B	60.13	―	0.04%	15.78%	15.01%
GLAND	63 Neutral	₹296.78B	35.03	―	1.07%	-1.51%	14.27%
ASTERDM	62 Neutral	₹330.54B	99.66	―	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 Releases Latest Investor Presentation on Company Performance

Aster DM Healthcare Ltd. has released an investor presentation detailing the company’s recent performance to the stock exchanges in Mumbai. The disclosure signals ongoing engagement with shareholders and the broader market, providing investors with updated insights into the company’s operations and financial standing, although the specific contents of the presentation are not included in the announcement.

Aster DM Healthcare Clears Q3 FY26 Results, New ESOP and Internal Capital Restructuring

Aster DM Healthcare Ltd.’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with the statutory auditor issuing an unmodified opinion, underscoring the integrity of the company’s reported performance. The board also cleared a new Employee Stock Option Scheme 2026 for eligible staff across the company, its unlisted subsidiaries and its unlisted holding company, a move aimed at strengthening employee alignment and retention, and approved the conversion of a ₹129.35 crore inter-corporate loan into equity in wholly owned unit Aster DM Multispecialty Hospital Pvt. Ltd., reinforcing its capital structure without altering ownership or control. Additionally, directors authorised the company to extend loans, guarantees and securities to group entities within legal limits and approved shifting the maintenance of statutory registers and returns to its Bengaluru corporate office, with shareholder approval for the ESOP, intra-group financing flexibility and records relocation to be sought via postal ballot.

Aster DM Healthcare Moves to Fully Acquire MIMS, Lifts Stake Toward 100%

Aster DM Healthcare’s Investment and Finance Committee has approved a proposal to increase its stake in its material subsidiary, Malabar Institute of Medical Sciences Ltd. (MIMS), from 79.75% to 100% by acquiring up to an additional 20.25% equity from existing shareholders for cash consideration. The move, which is not classified as a related-party transaction and requires no specific regulatory approvals, will be executed through a letter of offer expected to be dispatched shortly, with completion targeted within three months thereafter, and is aimed at fully consolidating a highly profitable hospital asset within Aster’s portfolio, potentially enhancing control, earnings consolidation and strategic flexibility for the group.

Aster DM Healthcare Plans Investor and Analyst Hospital Visits in Kerala

Aster DM Healthcare Limited has scheduled a hospital visit for a group of investors and analysts to its Aster Medcity facility in Kochi and QCIL KIMS in Trivandrum on January 8 and 9, 2026, which will include interactions with the company’s management. The company has clarified that the schedule may change due to exigencies and that no unpublished price-sensitive information will be shared during these interactions, underscoring its intent to enhance transparency and engagement with the financial community while remaining compliant with disclosure regulations.

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.