Niva Bupa Health (NIVABUPA)

FairStock Score: 57/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me run through the numbers as a businessman, not a speculator. Niva Bupa sells health insurance, a product people need, but the financial record in front of me is not attractive. The latest quarter shows revenue of ₹1,611 crore but a net loss of ₹88 crore. Full-year profit growth is down 761.93% and free cash flow is minus ₹693 crore. This is a business consuming cash, not generating it. The P/E is meaningless because earnings are negative. EV/EBITDA of 1,645.71 tells me the market is paying an enormous multiple for almost no underlying earnings. Altman Z-score at 1.80 is below the safe zone and near the danger zone. Mr. Graham would insist on a margin of safety. At ₹78, I am paying 4.71 times book value while book value is ₹16.55 and return on equity is -0.27%. That is a poor trade-off. There are some positives. Sales grew 10.29%, and the debt/equity ratio is low at 0.08. Promoter holding at 55.36% aligns ownership with minority shareholders. Piotroski F-score of 6/9 is decent. ROCE of 7.45% is positive, although overall profitability is not. Health insurance is a structurally growing market in India, but a growth market is not enough if the company cannot convert premiums into profits. This is a turnaround candidate: it needs to prove it can stop the bleeding. I would not buy today. I want to see narrower losses, positive free cash flow, and progress toward a reasonable return on equity. Until then, the risk is high and the valuation is not compensating me. For a value investor, this remains on the watchlist, not in the portfolio.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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