Narayana Hrudayalaya Ltd. (NH) AI Stock Analysis

• Market Cap: ₹389.90B
• Dividend Yield: 0.23%
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 45.9
• Beta (1Y): 0.70
• Revenue Growth: 14.72%
• EPS Growth: 8.37%
• Country: IN
• Employees: 11,659
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 12.60
• Shares Outstanding: 204,360,800
• 10 Day Avg. Volume: 18,091
• 30 Day Avg. Volume: 79,900
• PEG Ratio: 92.72
• Price to Book (P/B): 9.40
• Price to Sales (P/S): 6.22
• P/FCF Ratio: -354.49
• 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: ₹1,540.00
• Price Target Upside: -12.32% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4,223.34
• Revenue Forecast (FY): ₹6.27T

• Rating: 71 Outperform
• Price Target: ₹2,241.00 ▲(27.59% Upside)

Narayana Hrudayalaya Ltd. has a strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates bullish momentum, although the stock appears overvalued based on its P/E ratio. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's expanding market presence and successful service offerings, enhancing long-term financial stability.

Balance Sheet Health

A strong balance sheet with manageable debt levels supports financial resilience and provides flexibility for future investments or expansion.

Profitability

Improved profitability through cost management enhances the company's ability to reinvest in growth and maintain competitive pricing strategies.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain future cash flows and limit financial flexibility, potentially impacting long-term strategic initiatives.

Free Cash Flow Decline

A decline in free cash flow could limit the company's ability to fund new projects or respond to unexpected expenses, affecting growth potential.

EBITDA Margin Decline

A declining EBITDA margin may indicate rising operational costs or inefficiencies, which could pressure profitability if not addressed.

Narayana Hrudayalaya Ltd. Business Overview & Revenue Model

Company Description

Narayana Hrudayalaya Limited provides medical and healthcare services. The company operates and maintains hospitals, clinics, health centers, nursing homes, and other related activities. It offers services in various specialties, including cardiology, cardiac surgery, nephrology, urology, neurology, neuro-surgery, endocrinology, orthopedics, internal medicines, obstetrics, gynecology, pediatrics, neonatology, gastroenterology, and oncology. As of June 30, 2022, the company operated through a network of 19 owned/operated hospitals, 2 managed hospitals, 4 heart centers, and 18 clinics and information centers in India, as well as a hospital in the Cayman Islands. It also provides healthcare consultancy services, including licensing of ERP solutions. The company was incorporated in 2000 and is headquartered in Bengaluru, India.

How the Company Makes Money

Narayana Hrudayalaya Ltd. generates revenue primarily through patient services, which include inpatient and outpatient treatments, surgical procedures, and diagnostic services. The company operates on a fee-for-service model, where patients are charged for the services they receive. In addition to direct patient care, NH also earns revenue through partnerships with insurance companies, where they provide medical services to insured patients. Furthermore, NH has expanded its revenue streams by offering telemedicine services and health check-up packages. The company's focus on affordability and quality has attracted a significant patient base, contributing to its overall earnings.

Narayana Hrudayalaya Ltd. Financial Statement Overview

Summary

Narayana Hrudayalaya Ltd. demonstrates strong financial health with robust revenue growth and profitability. The balance sheet reflects prudent financial management, although increasing debt levels need monitoring. Cash flow management is generally effective, despite the recent dip in free cash flow. The company's financial trajectory remains positive, with attention needed on managing future financial risks.

Income Statement

Narayana Hrudayalaya Ltd. has shown a strong financial performance with consistent revenue growth, increasing from 25.8 billion in 2021 to 54.8 billion in 2025. The gross profit margin has improved, indicating better cost management. The net profit margin has remained stable, demonstrating profitability. However, the decline in EBITDA margin from 2024 to 2025 suggests potential cost pressures or investment in growth.

Balance Sheet

The company maintains a healthy balance sheet with a solid equity position. The debt-to-equity ratio is manageable, indicating prudent financial leverage. An increasing equity ratio suggests effective asset management. However, the rising total debt from 2022 to 2025 could pose future financial risks if not managed carefully.

Cash Flow

The cash flow position is relatively stable, with positive operating cash flow consistently over the years. Despite a dip in free cash flow in 2025 due to higher capital expenditure, the overall cash flow management remains robust. The operating cash flow to net income ratio indicates efficient conversion of income into cash, although the negative free cash flow in 2025 warrants attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.49B	54.83B	48.90B	45.30B	37.01B	25.84B
Gross Profit	24.69B	21.12B	18.41B	16.76B	12.13B	6.42B
EBITDA	12.59B	12.28B	11.02B	9.31B	6.19B	1.43B
Net Income	7.85B	7.90B	7.89B	6.06B	3.42B	-143.04M
Balance Sheet
Total Assets	0.00	72.65B	56.25B	41.62B	31.30B	27.70B
Cash, Cash Equivalents and Short-Term Investments	16.27B	16.27B	11.04B	6.51B	3.01B	2.39B
Total Debt	0.00	24.28B	16.27B	8.84B	7.23B	8.26B
Total Liabilities	-36.28B	36.37B	27.39B	20.30B	16.40B	16.49B
Stockholders Equity	36.28B	36.26B	28.84B	21.31B	14.89B	11.20B
Cash Flow
Free Cash Flow	0.00	-961.81M	959.93M	5.63B	2.34B	2.39B
Operating Cash Flow	0.00	9.86B	10.67B	10.85B	4.85B	3.09B
Investing Cash Flow	0.00	-13.25B	-14.58B	-11.74B	-2.67B	-1.13B
Financing Cash Flow	0.00	5.44B	4.88B	877.41M	-1.59B	-1.98B

Narayana Hrudayalaya Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1756.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NH, the sentiment is Positive. The current price of 1756.45 is below the 20-day moving average (MA) of 1909.06, below the 50-day MA of 1854.95, and below the 200-day MA of 1813.32, indicating a neutral trend. The MACD of 1.38 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NH.

Narayana Hrudayalaya Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹711.34B	20.78	―	0.33%	7.33%	-3.79%
NH	71 Outperform	₹389.90B	45.91	―	0.23%	14.72%	8.37%
HCG	67 Neutral	₹99.46B	273.58	―	―	17.58%	-38.20%
KIMS	65 Neutral	₹255.93B	76.60	―	―	25.74%	1.41%
MEDANTA	65 Neutral	₹314.23B	55.91	―	0.04%	15.78%	15.01%
FORTIS	61 Neutral	₹672.40B	66.31	―	0.11%	15.33%	54.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Narayana Hrudayalaya Ltd. Corporate Events

Narayana Hrudayalaya Faces GST Penalty, Plans to Appeal

Narayana Hrudayalaya Ltd. has been penalized by the GST Authority for alleged non-payment of GST on exempted healthcare services revenue for the financial year 2021-22, amounting to Rs. 2,45,27,710/-. The company has been ordered to pay a penalty of Rs. 24,62,172/-. Despite this, the company asserts that there will be no material impact on its financials or operations and plans to appeal the order, maintaining that the GST should not apply to the exempted revenue.

Narayana Hrudayalaya Schedules Investor Meeting with Kotak Securities

Narayana Hrudayalaya Ltd. has announced a scheduled virtual meeting with Kotak Securities Limited on December 2, 2025, as part of its investor relations activities. This meeting reflects the company’s ongoing efforts to engage with institutional investors and analysts, which could impact its market visibility and investor confidence.

Narayana Hrudayalaya Expands into UK with New Acquisition

Narayana Hrudayalaya Ltd. has announced its acquisition of UK-based Practice Plus Group Hospitals Limited, marking a significant expansion into the UK healthcare market. This strategic move is expected to enhance Narayana Hrudayalaya’s international presence and strengthen its position in the global healthcare industry, potentially offering new opportunities for growth and collaboration with stakeholders.

Narayana Hrudayalaya Expands UK Presence with Strategic Acquisition

Narayana Hrudayalaya Ltd. has announced the acquisition of Practice Plus Group Hospitals Limited in the UK through its subsidiary Narayana Hrudayalaya UK Ltd. This strategic acquisition, valued at GBP 188.78 million, expands Narayana’s international footprint and enhances its market positioning in the healthcare sector, with Practice Plus Group’s significant presence in the UK comprising multiple hospitals and treatment centers.