Krishna Institu. (KIMS)
Fast GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹809.1 |
| Market Cap | ₹32,375.24 Cr |
| P/E Ratio | 158.65 |
| ROCE | 15% |
| ROE | 14.07% |
| Dividend Yield | 0% |
| Profit Growth | -46.9% |
| Debt/Equity | 1.66 |
| Sales Growth | 35.3% |
| Free Cash Flow | ₹-534 Cr |
| Promoter Holding | 34.11% |
| 52-Week Range | ₹575.8 — ₹858.15 |
| Sector | Healthcare Services |
| Book Value | ₹56.17 |
Strengths
- Strong revenue growth: 5-year CAGR 17.94% and latest quarter sales of ₹998 Cr with 34.31% growth.
- Piotroski F-Score of 7/9 suggests solid operational and financial fundamentals.
- Altman Z-Score of 4.61 indicates low bankruptcy risk.
- ROCE of 15% and ROE of 14.07% show acceptable capital efficiency for a hospital business.
Concerns
- Extreme valuation: P/E of 101.62, P/B of 12.24, and Graham Number of ₹94.95 imply massive overvaluation and -684.67% margin of safety.
- Profit growth is negative at -3.82%, while latest quarter net margin is only ~5.2% (₹52 Cr on ₹998 Cr sales).
- Free cash flow is deeply negative at -₹534 Cr, and Debt/Equity of 1.40 adds balance sheet risk.
- EV/EBITDA of 265.74 and zero dividend yield mean no cash return to shareholders at an unreasonable multiple.
AI Analysis
KIMS presents a classic puzzle: a fast-growing hospital franchise valued like a tech unicorn. The revenue story is real — 5-year CAGR of 17.94%, latest quarter sales of ₹998 Cr, and 34.31% sales growth. But Graham taught me to measure a business by earnings and cash, not enthusiasm. Here net profit grew -3.82% and the latest quarter delivered only ₹52 Cr profit on ₹998 Cr sales — a 5.2% net margin. Free cash flow is -₹534 Cr. That is not earnings power; that is expansion consuming capital. At ₹654.25, the market capitalises the company at ₹29,812 Cr. That is 101.62 times earnings and 12.24 times book while ROE is only 14.07%. The Graham Number works out to ₹94.95, so the current price offers a margin of safety of -684%. EV/EBITDA of 265.74 makes no Graham sense. Debt/equity of 1.40 adds financial risk; a hospital balance sheet should be stronger. On the positive side, Altman Z of 4.61 suggests no near-term distress, and Piotroski F-Score of 7/9 indicates decent operational quality. Promoter holding of 34.11% is reasonable but not a controlling anchor. This may be a good business, but it is a bad investment at this price. I would rather miss the upside than overpay with no margin of safety. Let KIMS prove it can turn growth into cash profits, reduce leverage, and then revisit.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer