KK Shah Hospital (544013)

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

Key Financials

Strengths

• Revenue growth of 19.60% shows the hospital is increasing its top line.
• Latest quarter sales of ₹5 crore indicate a meaningful operating base for a micro-cap.
• Share price of ₹49.79 is near the upper end of its 52-week range, suggesting some market interest.
• Indian healthcare demand provides a long-term tailwind for hospitals.
• Latest quarter net profit is -₹0 crore, meaning losses are not yet deep.

Concerns

• Unprofitable operations: profit growth is -186.49% and ROCE is -2.33%.
• Piotroski F-Score of 3/9 indicates weak financial fundamentals.
• Critical data missing: book value, debt/equity, and promoter holding are all N/A, so balance sheet risk cannot be assessed.
• Zero dividend yield means shareholders receive no cash return while waiting for a turnaround.

AI Analysis

When I look at a stock, I first ask whether I am buying a wonderful business at a fair price. KK Shah Hospital, at ₹49.79 with a market cap of just ₹34 crore, fails my first test. The latest quarter shows sales of ₹5 crore, and revenue is growing at 19.6%, but that growth is not translating into owner earnings. Net profit is essentially zero, and profit growth is -186.49%. A hospital should be earning a return on the capital invested; here ROCE is -2.33%. That means the business is destroying value, not compounding it. Benjamin Graham taught me that the price you pay matters, but the underlying earnings power matters more. Without positive earnings, there is no meaningful P/E, and with no book value or debt-equity data, I cannot even evaluate the margin of safety. The Piotroski F-Score of 3/9 is a red flag; it suggests weak operating efficiency and financial health. There is no dividend to compensate patient shareholders. The 52-week range of ₹29 to ₹51.90 tells me the market is speculative about small hospital stocks, but price movements are not investment analysis. I need clarity on promoter holding, balance sheet, and a clear path to profitability. Healthcare demand in India is real, and 19.6% sales growth shows the hospital may be attracting patients. But a business that cannot cover its capital costs is like a leaky bucket; no amount of growth will fill it. I would wait on the sidelines until I see consistent positive net profit and a return on capital that exceeds the cost of capital.

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