GPT Healthcare (GPTHEALTH)

FairStock Score: 50/100 — MIXED

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

Key Financials

Strengths

• ROCE of 27.23% and ROE of 17.55% show solid capital efficiency.
• Revenue growth of 17.56% with latest quarterly sales at ₹120 crore reflects expansion.
• Debt/equity of 0.38 is conservative for a hospital business.
• Promoter holding of 65.57% aligns interests with minority shareholders.
• Dividend yield of 1.98% provides some downside support.

Concerns

• Profit growth is -23.51%, and latest quarterly net margin is only 7.5%.
• Piotroski F-Score of 4/9 signals weak or deteriorating fundamentals.
• Valuation is rich at P/E of 25.56 and P/B of 4.91, leaving no margin of safety.
• PEG of 1.46 looks misleading because it is based on sales growth, not actual negative profit growth.

AI Analysis

GPT Healthcare is a decent business selling at a price that offers little room for error. The company earns a healthy 27.23% ROCE and 17.55% ROE, and debt/equity of 0.38 is manageable. Promoter holding of 65.57% aligns ownership with minority shareholders, and a 1.98% dividend yield softens the wait. Sales grew 17.56%, and the latest quarter brought in ₹120 crore of revenue. That is the good part. The problem is earnings. Profit growth is down 23.51%, and the latest quarter's net profit of ₹9 crore translates into a thin 7.5% margin. A hospital with this kind of fixed investment should be able to do better. The Piotroski F-score of 4/9 reinforces my caution: the fundamentals are deteriorating, not improving. So why pay 25.56 times earnings and 4.91 times book value? Graham would call that speculation, not investment. The so-called PEG of 1.46 is meaningless when earnings are falling—it appears to be derived from sales growth. I cannot buy future quality at current price when profits are heading in the wrong direction. For a value investor, margin of safety matters. At ₹134.25, near the lower end of its 52-week range, the stock might look tempting, but a low price relative to its own history is not the same as cheap. Book value is only ₹27.36; the market is paying a large premium. I would need evidence that margins are stabilizing, profits are turning positive, and the F-score improves before I consider owning it. Until then, GPT Healthcare remains a watchlist candidate, not a conviction buy.

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