Narayana Hrudayalaya Stock: From Covid Lows to All-Time Highs

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StockEdge Picks Narayana Hrudayalaya Stock for Breakout Gains

By S Jha

MUMBAI, May 13, 2025 – Narayana Hrudayalaya (NH), a leading Indian healthcare provider, has emerged as a standout performer in the stock market. The stock has rallied over 800% from its Covid-era low of ₹204 to a lifetime high of ₹1,871 in April 2025. Narayana Hrudayalaya stock is currently trading at a PE valuation of 46.4. The RoE and RoCE for Narayana Hrudayalaya stock are healthy 26.4 and 31.5 per Screener respectively. The stock closed on ₹1775 on Tuesday amid a broader market selloff.

A recent analysis by StockEdge highlights the stock’s robust growth trajectory, technical strength, and future potential, while experts echo optimism about its long-term prospects.

StockEdge Analysis: A Remarkable Recovery

According to StockEdge, NH is in a firm upward trend. The stock consolidated between ₹1,075 and ₹1,400 for over a year before breaking out, now trending above key support zones with strong volume. Momentum scores as of May 5, 2025, reflect solid bullish sentiment: 65/100 (1-month), 80/100 (3-month), and 70/100 (6-month).

Over five years, NH has delivered a staggering 576.6% return, significantly outperforming benchmarks like Nifty Pharma (+133.8%) and Nifty 50 (+163.1%). The stock’s long-term outperformance, particularly in the last 2–3 years, underscores its resilience and growth in the healthcare sector.

Fundamentally, NH’s trailing twelve-month (TTM) metrics show a 42.4% price increase, with sales and EBITDA growing by 8.5% and 7.1%, respectively. However, net profit growth has slowed to 1.6%, a moderation from its long-term CAGR of 18.07%.

Despite this, the company’s financials remain strong, with a 5-year operating profit increase of 4x and an average CFO/EBITDA ratio above 95%, indicating solid cash generation.

Looking ahead, StockEdge identifies ₹1,870 as a key resistance level to watch for a potential breakout in the short term, while ₹1,075–₹1,175 remains a strong accumulation zone for long-term investors. The analysis concludes that NH’s price structure and business growth suggest further upside, positioning it as a “strong compounder” with breakout momentum and healthcare sector tailwinds.

Experts expressed bullish views on NH’s performance. One user on X, posting in January 2025, highlighted the stock’s 5-year CAGR of 29%, noting, “Operating profit has increased 4x in the last 5 years, with solid cash generation.” They emphasized the importance of tracking cash flows, as net income may not fully reflect the company’s financial health.

Another user in August 2024 called NH the “cheapest growth stock in the healthcare sector,” citing a ROCE of 27%, ROE of 31%, and a 23% profit margin, alongside a “visionary promoter team led by Devi Prasad Shetty”.

However, some caution persists. A post from November 2023 celebrated NH’s record Q2 FY24 results, with revenue at ₹1,305 crore, but recent data shows a 12.3% decline in consolidated net profit for Q3 FY25 at ₹192.94 crore, raising questions about short-term profitability amidst expansion plans, such as the new 110-bed hospital in Bengaluru South set to commence operations in FY 2026-27.

Market Context and Challenges

NH’s market cap stands at ₹36,692.98 crore as of May 7, 2025, with a P/E ratio of 46.82 and a P/B ratio of 11.45, indicating a premium valuation. The stock’s 52-week range spans ₹1,080 to ₹1,871.60, reflecting significant volatility but a clear upward trajectory.

Analysts, including Anand Rathi, recommend buying with a target price of ₹1,600, while Choice Equity Broking suggests holding at ₹1,460, citing limited near-term bed expansion in India until FY28.

The healthcare sector in India continues to benefit from rising demand, but challenges like high valuations (NH’s P/E is above the sector median) and moderated profit growth could test investor patience. NH’s expansion in the Cayman Islands and focus on high-margin procedures like oncology may bolster margins, but planned capital expenditures could pressure short-term earnings.

Narayana Hrudayalaya’s journey from Covid lows to all-time highs reflects its strong fundamentals and market confidence in its growth story. With StockEdge and experts on X signaling further upside, NH remains a stock to watch for both trend-followers and long-term investors. However, its premium valuation and recent profit dip warrant caution, making it crucial to monitor upcoming quarterly results on May 22, 2025, for clearer insights into its trajectory.

Note: StockEdge analysis and expert comments on X reflect market sentiment as of the latest updates. Investors should conduct their own research before making investment decisions.

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