Asarfi Hospital (543943)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 40.04% and profit growth of 101.47% show strong operating leverage
• Piotroski F-score of 7/9 indicates solid financial fundamentals
• ROCE of 15.83% is respectable for a hospital business
• PEG of 0.26 suggests the market may be underpricing recent growth
• Latest quarter net profit of ₹5 Cr on sales of ₹46 Cr implies healthy margins

Concerns

• Critical data missing: book value, ROE, debt/equity, and promoter holding prevent full balance sheet assessment
• No dividend means investor return depends entirely on capital appreciation and reinvestment
• High growth rates may not be sustainable in a competitive, regulatory-heavy hospital sector
• Trailing P/E of 18.47 offers limited margin of safety if growth decelerates sharply

AI Analysis

At ₹157.80, Asarfi Hospital carries a market cap of ₹311 Cr, a trailing P/E of 18.47, and a PEG of 0.26. That PEG is eye-catching: profit grew 101.47% while sales grew 40.04%. Graham would remind me that growth rates are not permanent, but such momentum in a capital-intensive hospital business suggests operating leverage is improving. ROCE at 15.83% is respectable, and a Piotroski F-score of 7/9 strengthens the case that the balance sheet and working capital are behaving well. Still, I am uncomfortable with how much is missing. There is no book value, ROE, debt/equity, or promoter holding data. I cannot judge financial leverage or whether management is aligned with minority shareholders. The latest quarter shows sales of ₹46 Cr and net profit of ₹5 Cr — that implies a healthy margin, but it is only one quarter. With no dividend, my return depends entirely on compounding and eventual re-rating. As a value investor, I prefer a margin of safety, and at 18.47 times earnings the market is paying for continued high growth. If Asarfi delivers even a fraction of its recent profit growth, the valuation is not demanding; if growth decelerates sharply, the multiple offers little protection. I would want to see multi-year evidence of pricing power, a stronger moat in its service area, and clearer capital allocation before calling it a core holding. It is a promising fast grower, but for a hospital business, proving sustainable execution is everything.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer