Altman Z″
Needs current assets and current liabilities.
ABH · Hospital & Healthcare Services · INE1R2M01019
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
ABH Healthcare Limited owns and operates 'Anil Baghi Hospital', a multi-specialty tertiary care hospital in Ferozepur, Punjab, originally established in 1985 with 30 beds and acquired by the company in 2022. The hospital has consistently expanded its infrastructure, scaling its capacity to 150 beds by Fiscal 2026. As of March 31, 2026, the hospital has 125 operational beds, including 70 intensive care unit (ICU) beds. The hospital's average bed occupancy rate has registered a downward trend over the last three financial years, declining from 63% in Fiscal 2024 to 49% in Fiscal 2025 and 47% in Fiscal 2026. The facility offers 25 specialties including cardiology, neurology, orthopedics, urology, and critical care. Its customer base is heavily driven by tie-ups with government schemes (such as Ayushman Bharat-Sarbat Sehat Bima Yojana), corporate bodies, and third-party insurance administrators, which collectively accounted for 60.05% of revenues in Fiscal 2026. The company reaches patients directly at its hospital facility and also operates an off-campus outpatient clinic established under its subsidiary ABH Clinics LLP.
Operational moats include established brand recall of the 3-decade-old Anil Baghi Hospital in Punjab, US-trained doctor-led professional promoter management, key empanelment with major government programs like Ayushman Bharat, and advanced technology integrations being accredited with NABH Digital Standards (Silver Category).
ABH Healthcare Limited (formerly ABH Healthcare Private Limited) owns and operates 'Anil Baghi Hospital', a super-specialty healthcare facility established in 1985 in Ferozepur, Punjab, with 150 beds offering 25 medical specialties.
Source: p. 37, 124, 130, 224
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Sangani Hospitals Limited | 5.17 | 24.52 | 16.2 | p. 99, 100 | |
| Maitreya Medicare Limited | -5.5 | -34.11 | -8.1 | p. 99, 100 | |
| Asarfi Hospital Limited | 9.6 | 27.63 | 18.65 | p. 99, 100 |
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived |
|---|---|---|---|---|---|---|---|
| consolidated | FY26 | 0 | 5.6394 | 14.7165 | 10.74% | 52.5069 | yes |
| consolidated | FY25 | 0 | 5.347 | 13.1951 | 10.85% | 49.2671 | yes |
| standalone | FY24 | 0 | 1.6556 | 6.8928 | 4% | 41.3802 | yes |
Written before listing, answered from the document itself.
How are the fresh IPO proceeds allocated and is there debt refinancing?
The fresh issue proceeds are heavily designated for balance sheet repair: ₹17.00 Cr is allocated for the repayment or prepayment of outstanding borrowings (representing 77.27% of specified proceeds), and ₹5.00 Cr is allocated for funding working capital requirements. Capital expenditure on fresh healthcare assets is Nil.
p. 85, 86, 87
Who are the promoters and what is their acquisition cost?
The promoters are Dr. Kamal Baghi, Dr. Saurabh Baghi, and Dr. Vaishali Saini. Following a massive bonus issue of 6,000,000 shares on 2025-04-29 (which capitalized reserves), their nominal cost of acquisition per share is highly diluted to nominal fractional levels.
p. 76, 77, 78
Are there material related party transactions or director loan movements?
Yes. In FY26, the company advanced unsecured personal loans to promoters and directors: Dr. Saurabh Baghi took ₹0.69 Cr and repaid ₹0.98 Cr, Dr. Kamal Baghi took ₹0.45 Cr and repaid ₹0.54 Cr, and Dr. Vaishali Saini took ₹0.29 Cr and repaid ₹0.40 Cr. Group entities Five Creeks Healthcare LLP and ABH Clinics LLP are also core operational dependencies.
p. 26, 147-149, 240, 241
Does operating cash flow align with reported profitability?
No. In FY26, despite reported consolidated net profit (PAT) growing to ₹5.64 Cr, Cash Flow from Operations was only ₹2.11 Cr. This low cash conversion was driven by trade receivables more than doubling in 24 months to ₹33.11 Cr.
p. 177, 180, 184, 186
What structural market parameters apply to this SME offer?
The offer is a 100% book-built fresh issue listing on the NSE EMERGE platform. Rikhav Securities Limited acts as the market maker with up to 1,72,800 shares reserved. Post-issue capital is structured at ₹11.43 Cr (11,429,600 equity shares).
p. 3, 8, 10, 52, 70
What the issue priced at, on the figures in the document.
The peer group includes Sangani Hospitals Limited (P/E 24.52), Maitreya Medicare Limited (P/E -34.11), and Asarfi Hospital Limited (P/E 27.63). Maitreya Medicare Limited has a negative P/E of -34.11, while the overall peer average P/E is printed as 26.08.
Source: p. 97, 99, 100
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2021-03-02 | Dr. Saurabh Baghi | 40000 | 10 | promoter | initial | p. 76 |
| 2021-03-02 | Dr. Vaishali Saini | 30000 | 10 | promoter | initial | p. 76 |
| 2021-03-02 | Late Mrs. Mukta Baghi | 30000 | 10 | promoter group | initial | p. 76 |
| 2022-11-24 | Dr. Kamal Baghi | 1900000 | 20 | promoter | rights | p. 76 |
| 2025-04-29 | Dr. Saurabh Baghi | 4110000 | promoter | bonus | p. 76, 77 | |
| 2025-04-29 | Dr. Kamal Baghi | 1799988 | promoter | bonus | p. 76, 77 | |
| 2025-04-29 | Dr. Vaishali Saini | 90000 | promoter | bonus | p. 76, 77 | |
| 2025-04-29 | Mr. Hem Raj Saini | 3 | promoter group | bonus | p. 76, 77 | |
| 2025-04-29 | Mrs. Rita Saini | 3 | promoter group | bonus | p. 76, 77 | |
| 2025-04-29 | Mrs. Sukarma Khanna | 3 | promoter group | bonus | p. 76, 77 | |
| 2025-04-29 | Mr. Pradeep Khanna | 3 | promoter group | bonus | p. 76, 77 |
Ceo: Dr. Saurabh Baghi (Managing Director)
Against the Company: 3 material civil consumer and employment lawsuits totaling ₹0.2008 Cr, and 3 tax proceedings (TRACES TDS defaults) of ₹0.0466 Cr. Against the Promoters: 5 civil negligence and contract claims of ₹2.5931 Cr, and 6 direct tax proceedings (outstanding income tax and TDS demands) of ₹0.1003 Cr. Against Directors (excl. Promoters): 1 tax TDS default of ₹0.0031 Cr. Against Controlled Entities: 2 tax TDS defaults of ₹0.0005 Cr. Filed BY the Company: 1 statutory income tax appeal of ₹0.1857 Cr. Filed BY the Promoters: 3 civil suits (insurance and utility claims) totaling ₹0.4216 Cr. Filed BY Directors: 1 civil negligence appeal of ₹0.0020 Cr.
Auditor name: M/s. G.D. Singhal & Associates, Chartered Accountants (Partner: CA Gagan Deep Singhal)
Skin in game: 100.00%
Auditor rpt flags: None disclosed
Auditor changed last 3y: Yes
Source: p. 3, 5, 25, 26, 67, 157, 172, 236-242
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 37% of trailing profit. On its own this can be working-capital timing in a growth year — worth watching whether it persists.
Why this reading: Kept at caution, not flagged: it is a single-year gap and the multi-year cash record does not (yet) show a repeated shortfall. One soft year is not a verdict.
Operating cash ₹2 cr vs trailing profit ₹6 cr. A one-year gap below 0.5 is often growth working capital; it becomes a real concern only if it recurs.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-6 cr, negative in 5 of 5 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 54% over two years while the company also carries ₹2 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹55 cr from ₹36 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Net margin improved from 2.6% to 10.9% year-on-year — the business is keeping more of each rupee.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Quarter net margin 10.9% vs 2.6% four quarters earlier. Expansion from operating leverage is healthy; verify it is not a one-off gain.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 4.7% of assets. Free cash flow negative in 5 of 5 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital and revenue are growing at broadly similar rates — the asset base is being used, not just added to.
cumulative operating cash flow ÷ cumulative net profit
₹8 cr ÷ ₹13 cr, over 5 years
0.60×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹6 − ₹2) cr ÷ average assets
4.7%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
10.9% × 0.61 × 4.92
32.5%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹12 cr ÷ ₹4 cr
2.77×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹55 cr ÷ ₹17 cr
3.17×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +79% vs revenue +77%, FY2023 to FY2026
3pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Some figures appear twice on this page with different values. That is not an error — they sit on different bases. The live feed reports a rolling twelve months; everything computed here comes from the last audited statements. Both are shown so you can see which is which.
Where the two disagree, every model, screen and ratio computed on this page uses the filed figure, because the rest of the page is on that basis.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Hospital & Healthcare Services). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 24 | 74 | 110 | 148 | 234 |
| Inventory days
How long stock sits before it sells | — | — | — | 159 | 117 |
| Payable days
How long the company takes to pay suppliers | — | — | — | 242 | 239 |
| Cash conversion cycle
Debtor + inventory − payable days | 24 | 74 | 110 | 66 | 113 |
| Working capital days | -986 | -59 | -17 | 36 | 172 |
| ROCE %
Return on capital employed | — | 10.8% | 17.4% | 23.3% | 19.9% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Revenue from operations | 4 | 29 | 40 | 49 | 52 |
| Other income | 0 | 0 | -1 | 0 | 0 |
| Depreciation | 0 | 2 | 2 | 2 | 2 |
| Finance cost | 0 | 1 | 3 | 4 | 4 |
| Profit before tax | 0 | 1 | 2 | 7 | 8 |
| Net profit (owners) | 0 | 1 | 2 | 5 | 6 |
| EPS (₹) | 9.00 | 3.55 | 8.30 | 26.70 | 7.06 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Equity Capital | 0 | 2 | 2 | 2 | 8 |
| Reserves | 0 | 3 | 4 | 10 | 9 |
| Borrowings | 21 | 21 | 36 | 42 | 55 |
| Net block | 23 | 23 | 34 | 37 | 42 |
| CWIP | 0 | 1 | 0 | 0 | 0 |
| Investments | 0 | 0 | 0 | 0 | 2 |
| Total Assets | 26 | 33 | 51 | 64 | 85 |
| Line | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Cash from operations | 3 | -2 | 1 | 4 | 2 |
| Cash from investing | -24 | -1 | -13 | -5 | -9 |
| Cash from financing | 21 | 3 | 12 | 2 | 9 |
| Free cash flow | -20 | -3 | -12 | -1 | -6 |
| Net change in cash | 0 | 0 | 0 | 1 | 2 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.