Shalby Ltd. (SHALBY) AI Stock Analysis

• Market Cap: ₹15.12B
• Dividend Yield: 0.59%
• Average Volume (3M): 71.31K
• Price to Earnings (P/E): 310.4
• Beta (1Y): 1.15
• Revenue Growth: 11.49%
• EPS Growth: -91.65%
• Country: IN
• Employees: 2,853
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.16
• Shares Outstanding: 108,009,766
• 10 Day Avg. Volume: 22,132
• 30 Day Avg. Volume: 71,313
• PEG Ratio: -3.76
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.99
• P/FCF Ratio: -21.06
• 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): 2.25
• Revenue Forecast (FY): ₹11.82B

• Rating: 50 Neutral
• Price Target: ₹147.00 ▼(-27.51% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak cash flow and a sharp profitability decline, alongside bearish technicals with the stock trading below key moving averages. Strong revenue growth and a relatively solid equity base provide partial support, but valuation is challenging due to an extremely high P/E and only a modest dividend yield.

Positive Factors

Revenue growth momentum

Sustained 16.4% revenue growth reflects expanding patient volumes and service adoption across the hospital network. Over 2-6 months this underpins durable top-line capacity to fund operations and selective reinvestment, supporting scale economies in a capital-intensive sector.

Balance sheet solidity

A 58.2% equity ratio provides long-term financial flexibility to absorb shocks, fund capex, and support expansion without excessive reliance on short-term debt. This capital structure is a durable buffer in healthcare where steady investment in facilities is required.

Specialized hospital network

A clear clinical focus on orthopaedics and joint replacement with a multi-city hospital footprint creates durable competitive advantages: clinical reputation, referral flows, repeat procedures, and pricing power in specialized services that support stable demand over time.

Negative Factors

Margin compression

Sharp decline in gross and net margins signals sustained cost pressures or pricing/reimbursement erosion. Over months this reduces operating leverage and ability to self-fund growth, making profitability more sensitive to volume swings and increasing execution risk.

Negative free cash flow

Material negative free cash flow indicates the business is not generating surplus cash after capital spending. This is a structural concern in healthcare, limiting capacity for capex, debt reduction, or shareholder returns without external funding.

Rising leverage & falling returns

Increasing leverage combined with sharply lower return on equity weakens financial resilience. Higher debt costs with reduced profitability reduce flexibility for strategic investments and raise vulnerability to interest or demand shocks over the medium term.

Shalby Ltd. Business Overview & Revenue Model

Company Description

Shalby Limited operates multi-specialty hospitals primarily in India. The company offers arthroscopy, arthroplasty, cardiology, cardiothoracic and vascular surgery, cosmetic and aesthetic, dental cosmetic and implant ology, emergency medicine, endocrinology, endoscopy and laparoscopy, ENT surgery, gastroentero surgery, gastroenterology, general medicine and surgery, hair transplant, liver disease and transplant, and hip and knee joint replacement services. It also provides infectious disease, infertility and IVF, intensive and critical care, maxillofacial surgery, nephrology, neuro surgery, neurology, obesity surgery, obstetrics and gynecology, oncology, oncosurgery, ophthalmology and glaucoma, orthopedic and trauma, pediatric orthopedic, pathology and microbiology, pediatrics and neonatology, plastic surgery, pulmonology and chest, radiology and imaging, rheumatology, trauma, organ donation, and urosurgery services. The company operates 11 hospitals comprising aggregate capacity of 2,012 beds. In addition, it offers outpatient services through 50 outpatient clinics, as well as provides educational programs and fellowships for paramedical students and other healthcare professionals; and homecare health services, such as attendants, doctors, nursing, physiotherapy, pathology, pharmacy, and medical equipment, as well as conducts clinical research trials. It also operates in Kenya, Tanzania, Rwanda, Uganda, the United Arab Emirates, Bangladesh, Cambodia, Jakarta, Oman, Uzbekistan, Nepal, and internationally. The company was formerly known as Shalby Hospitals Limited and changed its name to Shalby Limited in February 2008. Shalby Limited was founded in 1994 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Shalby Ltd. generates revenue primarily through its hospital operations, which include inpatient and outpatient services, surgical procedures, and diagnostic services. The company's revenue model is based on a fee-for-service approach, where patients are charged for the medical services and treatments they receive. Key revenue streams include patient admissions, elective surgeries, and consultations across various specialties. Additionally, Shalby may benefit from partnerships with insurance providers and government health programs that facilitate patient access to its services. Other factors contributing to its earnings include the expansion of its hospital network, strategic alliances with healthcare providers, and the introduction of advanced medical technologies that attract a broader patient base.

Shalby Ltd. Financial Statement Overview

Summary

Revenue growth is strong (16.4% from 2024 to 2025), but profitability deteriorated sharply with gross margin falling (26.8% to 18.6%) and net margin collapsing (9.0% to 0.6%). Balance sheet strength is supportive (equity ratio 58.2%) though leverage rose (debt-to-equity 0.48). Cash flow is a major weakness with negative free cash flow (-1,027m) and poor conversion of earnings to cash.

Income Statement

Shalby Ltd. has shown a steady increase in revenue over the years, with a notable revenue growth rate of 16.4% from 2024 to 2025. However, the gross profit margin declined from 26.8% in 2024 to 18.6% in 2025, indicating increased cost pressures. The net profit margin also saw a significant drop from 9.0% in 2024 to just 0.6% in 2025, largely due to a sharp decrease in net income. The EBIT and EBITDA margins have contracted, suggesting operational challenges.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 58.2% in 2025, despite a slight decline from previous years. The debt-to-equity ratio increased from 0.38 in 2024 to 0.48 in 2025, reflecting higher leverage. Return on equity has dropped significantly due to decreased net income, reflecting lower profitability relative to equity.

Cash Flow

The cash flow statement reveals concerning trends, particularly a negative free cash flow of -1,027 million in 2025, exacerbated by increased capital expenditure. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio highlights challenges in converting profit to cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.22B	10.87B	9.34B	8.05B	6.99B	4.31B
Gross Profit	4.00B	2.02B	2.50B	3.70B	3.05B	1.81B
EBITDA	1.60B	1.60B	1.90B	1.61B	1.30B	947.61M
Net Income	44.77M	62.22M	840.77M	677.01M	541.25M	423.96M
Balance Sheet
Total Assets	17.82B	17.04B	16.08B	12.81B	11.94B	9.97B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.29B	1.08B	2.16B	2.02B	1.29B
Total Debt	5.35B	4.76B	3.78B	1.81B	1.74B	541.27M
Total Liabilities	7.80B	7.08B	6.00B	3.54B	3.17B	1.62B
Stockholders Equity	10.02B	9.92B	10.00B	9.28B	8.76B	8.35B
Cash Flow
Free Cash Flow	-671.45M	-1.03B	-275.11M	492.90M	-564.77M	577.89M
Operating Cash Flow	138.47M	-313.01M	195.96M	677.73M	189.17M	843.49M
Investing Cash Flow	-692.97M	-433.53M	380.73M	-610.59M	-602.82M	-569.70M
Financing Cash Flow	396.33M	822.58M	-1.51B	-500.24M	904.59M	-293.57M

Shalby Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHALBY, the sentiment is Negative. The current price of 202.8 is above the 20-day moving average (MA) of 147.92, above the 50-day MA of 162.44, and above the 200-day MA of 199.36, indicating a bearish trend. The MACD of -6.83 indicates Negative momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 27.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHALBY.

Shalby Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMSPHARMA	70 Outperform	₹36.03B	29.96	―	0.13%	11.91%	36.92%
VIMTALABS	67 Neutral	₹19.10B	38.21	―	0.16%	17.05%	56.84%
TTKHLTCARE	64 Neutral	₹11.48B	34.84	―	0.95%	6.98%	-17.11%
KRSNAA	62 Neutral	₹19.01B	38.37	―	0.38%	11.51%	21.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹20.09B	144.78	―	―	9.78%	50.78%
SHALBY	50 Neutral	₹15.12B	310.39	―	0.59%	11.49%	-91.65%

Shalby Ltd. Corporate Events

Shalby Subsidiary Hospital in Gurugram Secures NABH 6th Edition Accreditation

Shalby Limited has announced that its subsidiary PK Healthcare Private Limited, which operates Shalby International Hospitals in Gurugram, has received accreditation under the 6th Edition standards of the National Accreditation Board for Hospitals & Healthcare Providers. This certification, valid until 2030, underscores the hospital’s adherence to stringent benchmarks in patient safety, clinical governance, risk management and continuous quality improvement.

The company said the accreditation will help further reinforce patient-centered and evidence-based care, tighten infection control and safety protocols, and enhance transparency and accountability across its operations. The recognition is expected to support Shalby’s positioning as a quality-focused healthcare provider and may strengthen stakeholder confidence in the group’s clinical standards and operational rigor.

Shalby Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Shalby Limited has filed a confirmation certificate for the quarter ended December 31, 2025, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming that details of securities dematerialised and rematerialised during the period have been duly submitted by its registrar and share transfer agent, KFin Technologies Limited, to all stock exchanges where its shares are listed. The routine regulatory filing underscores the company’s adherence to depository and listing requirements, providing assurance to investors and regulators about proper handling and reporting of its share capital movements in the depository system.

Shalby Reports Nil Physical Share Transfer Re‑lodgement Requests for December 2025

Shalby Limited has reported to the NSE and BSE that, under SEBI’s special window for re-lodgement of transfer requests of physical shares for December 2025, it did not receive, process, approve or reject any such requests, with the data table for the month showing all entries as nil. The disclosure, filed in compliance with SEBI’s “Ease of Doing Investment” circular, indicates that there was no activity related to transfer‑cum‑dematerialisation of physical shares during the month, suggesting limited residual investor reliance on physical share transfers and underscoring the company’s adherence to evolving regulatory norms around dematerialisation.