Ventive Hospital (VENTIVE)

FairStock Score: 70/100 — STEADY

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

Key Financials

Strengths

• Explosive growth: sales +286.11% and profit +426.58% from the reported figures
• Latest quarter strong: ₹686 Cr sales and ₹141 Cr net profit
• Piotroski F-Score of 8/9 suggests improving financial fundamentals
• High promoter holding of 88.99% indicates strong owner alignment
• PEG ratio of 0.06 implies extremely low price relative to current growth rate

Concerns

• Valuation is stretched: P/E 49.81 and EV/EBITDA 169.51
• Free cash flow deeply negative at ₹-984 Cr, profits are not converting to cash
• ROE only 6.74% despite debt/equity of 0.52, indicating weak shareholder returns
• Altman Z-Score of 2.07 and negative margin of safety of -36.98% vs Graham Number of ₹507.14

AI Analysis

Let me assess Ventive the way Graham taught: buy with a margin of safety, and treat growth as a bonus, not as the price. Here, the market has already paid for extraordinary growth: price-to-earnings of 49.81 and EV/EBITDA of 169.51. The sales jump of 286.11% and profit jump of 426.58% are eye-catching, and the latest quarter of ₹686 Cr sales and ₹141 Cr net profit shows momentum. The Piotroski F-score of 8/9 also suggests the reported fundamentals are improving. But a value investor must ask: where is the cash? Free cash flow is minus ₹984 Cr, so the business is burning capital while reporting profit. Return on equity is only 6.74%; with debt/equity of 0.52, this is not a high-return franchise. In fact, with an Altman Z-score of 2.07, the balance sheet is in the grey zone. The Graham Number is ₹507.14, and at ₹621.25, I am buying with a negative margin of safety of about 37%. Promoter holding is 88.99%, which can be positive alignment, but in a company with such a small free float, prices can be distorted. Dividend yield of zero means I am relying solely on the story. There is no moat visible in these numbers; a hotel-resort classification for a hospital business only adds to the uncertainty. If this company can convert profits into free cash flow, improve ROE and de-lever, I would be interested. Today, Ventive is a fast grower, but as Graham said, the market is a voting machine in the short run and a weighing machine in the long run. Right now, the weighing machine shows negative cash flows and an expensive valuation. I'll pass.

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