Maitreya Medicare Quality Parameter Revision: A Detailed Analysis of Business Fundamentals

Nov 19 2025 08:00 AM IST
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Maitreya Medicare, a player in the hospital sector, has undergone a revision in its quality parameter evaluation, shifting from an average to a below average grade. This adjustment reflects changes in key business fundamentals such as return on equity (ROE), return on capital employed (ROCE), debt levels, and growth metrics, which are critical for investors analysing the company’s financial health and operational consistency.



The company’s five-year sales growth stands at 7.40%, indicating a moderate expansion in revenue over the period. However, the EBIT growth over the same timeframe shows a contraction of 22.52%, signalling challenges in operational profitability. The average EBIT to interest coverage ratio is 4.77, suggesting that earnings before interest and tax have been sufficient to cover interest expenses multiple times, which is a positive indicator of financial stability.



Debt metrics reveal a net debt to equity ratio averaging 0.02 and a debt to EBITDA ratio of 0.64, both figures pointing to relatively low leverage. This suggests that Maitreya Medicare maintains a conservative debt profile, which may provide flexibility in managing financial obligations. The sales to capital employed ratio averages 1.30, reflecting the efficiency with which the company utilises its capital to generate sales.




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The average ROCE for Maitreya Medicare is recorded at 13.17%, while the average ROE is 8.20%. These returns provide insight into the company’s ability to generate profits from its capital base and shareholders’ equity respectively. The tax ratio is noted at 40.99%, which is a significant component affecting net profitability. Dividend payout ratio data is not available, and pledged shares stand at zero, indicating no promoter share pledging.



Institutional holding is minimal at 0.01%, which may reflect limited institutional interest or recent changes in shareholding patterns. When compared with peers in the hospital industry, Maitreya Medicare’s quality evaluation is below average, while competitors such as KMC Speciality and Asarfi Hospital maintain average quality grades. This contextualises the company’s standing within its sector.



From a market perspective, Maitreya Medicare’s stock price closed at ₹268.90, up 3.20% on the day, with a 52-week high of ₹362.00 and a low of ₹214.45. Short-term returns show a 1-week gain of 9.49% and a 1-month gain of 6.28%, both outperforming the Sensex returns of 0.84% and 0.78% respectively. However, year-to-date and one-year returns are negative at -20.01% and -21.5%, contrasting with Sensex gains of 9.58% and 10.47% over the same periods.




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Overall, the revision in Maitreya Medicare’s quality parameter reflects a nuanced picture of its business fundamentals. While the company demonstrates moderate sales growth and maintains low leverage, the contraction in EBIT growth and below average returns on equity and capital employed suggest areas requiring attention. Investors analysing this hospital sector stock should consider these factors alongside market performance and peer comparisons to form a comprehensive view.






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