Is Sangani Hospital overvalued or undervalued?

As of 1 September 2025, Sangani Hospital's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 37.24, an EV to EBITDA of 31.44, and a ROCE of 12.91%. Compared to its peers, Sangani Hospital's valuation appears reasonable; for instance, Apollo Hospitals, which is rated attractive, has a significantly higher PE ratio of 70.12, while Max Healthcare is deemed very expensive with a PE of 95.18.
Despite the fair valuation, Sangani Hospital has shown strong stock performance relative to the Sensex, with a 1-year return of 66.67% compared to the Sensex's decline of 2.42%. This performance suggests that while the hospital's valuation is fair, it has been able to attract investor interest, potentially due to its growth prospects in a competitive market. Overall, Sangani Hospital is fairly valued in the current market context.