Narayana Hrudayalaya Receives 'Hold' Rating from MarketsMOJO, Shows High Management Efficiency and Healthy Growth

Narayana Hrudayalaya, a leading hospital and healthcare services company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 15.62%. Additionally, the company has shown healthy long-term growth, with an annual operating profit growth rate of 36.71%.
Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Mildly Bearish on 28-Oct-24. The Bollinger Band and KST technical factors also indicate a Bullish trend. Furthermore, with a ROCE of 28, the stock is considered to have an attractive valuation, with an Enterprise value to Capital Employed ratio of 8.

However, the company did face some negative results in June 2024, with the lowest Operating Profit to Interest ratio at 8.93 times and the highest Interest at Rs 34.02 crore. This may have contributed to the decrease in institutional investor participation, with a decrease of -0.66% over the previous quarter. Institutional investors, who have better resources to analyze company fundamentals, currently hold 17.58% of the company.

In the last year, Narayana Hrudayalaya's stock has underperformed the market, generating a return of 23.07% compared to the market's (BSE 500) return of 34.46%. However, the company's profits have still risen by 18.7%, with a PEG ratio of 1.7. Overall, while the company has shown strong management efficiency and growth potential, it is currently facing some challenges that may have contributed to the 'Hold' rating from MarketsMOJO.