Artemis Medicare (ARTEMISMED)

FairStock Score: 33/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 17.73% and profit growth of 19.59% show solid business expansion.
• Low debt-to-equity of 0.31 provides financial stability for a capital-intensive hospital business.
• Piotroski F-Score of 7/9 indicates a generally healthy financial position.
• Promoter holding of 58.39% aligns management interests with minority shareholders.
• ROCE of 14.88% is respectable for the hospital sector.

Concerns

• Valuation is rich with P/E of 38.20 and P/B of 4.61, leaving little margin of safety.
• PEG ratio of 2.05 suggests the market is pricing in far more than current growth justifies.
• Dividend yield of just 0.19% offers negligible income to shareholders.
• FairStock Score of 27/100 flags the stock as risky; it is down sharply from the 52-week high of ₹325.80.

AI Analysis

Let me look at Artemis Medicare as I would any business. It is a hospital operator, a sector I respect because demand for quality healthcare compounds for decades as incomes rise and demographics age. The company has grown sales at nearly 18% and profits at close to 20%, which is genuinely good. Return on equity is 12.19%, and ROCE is 14.88%; not mouth-watering, but respectable for an asset-heavy hospital business. I am pleased borrowed capital is moderate, with debt-equity only 0.31. Promoters own 58.39%, aligning their interests with mine. The Piotroski score of 7 suggests the recent financial condition is sound. But price is where discipline matters. At ₹232.75, I am paying 38.2 times earnings and 4.61 times book value. For a business earning low-teens return on book, a P/B above 4 is a very high price. Even adjusting for growth, the PEG ratio of 2.05 says I am paying more than the growth rate justifies. The dividend yield of 0.19% is negligible; as a minority shareholder, my near-term cash return is tiny. The 52-week range also tells me sentiment has cooled from ₹325 to ₹232, and the FairStock score labels this risky at 27/100. Warren Buffett said a great business at a fair price is far better than a fair business at a great price, but a good business at a rich price can still be a poor investment. Artemis is a decent grower with manageable leverage and strong promoters. Yet at this valuation, the margin of safety is thin. I would wait for a lower price or a clear demonstration that ROE can rise substantially. Until then, I keep it on my watchlist, not in my wallet.

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