Altman Z″
Needs current assets and current liabilities.
CREDENT · Hospital & Healthcare Services · INE1KPX01025
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.
Credent Connect N Care Limited operates a technology-enabled healthcare support, operations, and supply chain logistics platform. The company provides smart courier aggregation through its 'C3 Post' vertical and specializes in cold-chain logistics for diagnostic samples, medical supplies, reagents, and instruments. It operates from a registered office in Ashok Vihar, Delhi, and maintains rented branch or warehouse locations in Pune, Varanasi, Saki Naka (Mumbai), and T Nagar (Chennai). Since the company is primarily a service provider and does not manufacture physical goods, capacity and capacity utilization metrics are not applicable to its business. Its primary customers are diagnostic laboratories, healthcare providers, and wellness clients, having associated with 2,530 laboratories as of March 31, 2026. The company reaches its clients directly via integrated systems for home collection, centralized aggregation points, and partner courier networks.
Comprehensive healthcare ecosystem and logistics platform, well-established relationships with diagnostic laboratories, experienced promoters and directors, and a widespread reach in domestic markets.
Credent Connect N Care Limited operates a technology-enabled courier aggregation and logistics platform in India, providing courier aggregation, COD reconciliation, and cold-chain logistics services.
Source: p. 97, 119
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 | 1.3033 | 18.4478 | 28.4636 | 8.61% | 214.1618 | yes |
| standalone | FY25 | 8.6938 | 2.2467 | 4.9948 | 2.88% | 77.9426 | yes |
| standalone | FY24 | 14.1634 | 2.6644 | 4.2963 | 3.52% | 75.7332 | yes |
Written before listing, answered from the document itself.
How are the fresh issue IPO proceeds allocated?
The proceeds are earmarked for working capital requirements of the company (Rs 37.00 Cr) and its subsidiary Credent Healthcare Private Limited (Rs 26.80 Cr), loan repayment (Rs 6.00 Cr), and subsidiary capital expenditure (Rs 3.00 Cr). Working capital makes up 87.63% of the specified allocations.
p. 87
Who are the promoters and what is their acquisition cost?
The promoters are Ashok Kumar Sharma, Karan Sharma, Tarun Sharma, Dimple Sharma, and Tanveen, holding 87.52% pre-issue. Due to a 50:1 bonus issue in February 2026, their nominal acquisition cost for recent allotments (such as the October 2025 preferential allotment at Rs 1,576) is reduced to Rs 30.90 per share.
p. 71, 72
Are there material related party transactions or director loan balances?
Yes. The promoters/directors have taken substantial outstanding loans from the company: Dimple Sharma (Rs 5.84 Cr), Ashok Kumar Sharma (Rs 5.74 Cr), and Tarun Sharma (Rs 2.04 Cr), totaling Rs 13.62 Cr. Additionally, the company outsources core tech integration to group company Alltrak Technologies Private Limited (Rs 1.30 Cr in FY26 sales).
p. 17, 18, 149, 150, 225, 275, 276
Does operating cash flow align with reported profitability?
No. In FY26, despite reported consolidated net profit (PAT) jumping to Rs 18.45 Cr, Cash Flow from Operations was deeply negative at Rs -6.62 Cr. This is because uncollected trade receivables more than tripled to Rs 58.83 Cr.
p. 173, 174, 175, 176
What structural market parameters apply to this offer?
The offer is a 100% Fresh Issue of up to 4,968,000 equity shares listing on the NSE Emerge platform. Hem Finlease Private Limited acts as the market maker with up to 2,52,000 shares reserved. Post-issue capital is structured at Rs 18.79 Cr (1,87,86,900 shares of face value Rs 10 each).
p. 1, 3, 50, 57, 71, 239
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2015-06-25 | Initial Subscribers (Ashok Kumar Sharma & Kishore Kumar Gemini) | 1000 | 100 | other | initial | p. 71, 72 |
| 2022-07-07 | Ashok Kumar Sharma & Karan Sharma | 19000 | 156 | promoter | rights | p. 71, 72 |
| 2023-11-20 | Existing Shareholders (Sub-division of FV ₹100 to FV ₹1) | 2000000 | other | split | p. 71, 72 | |
| 2025-04-01 | Existing Shareholders (Consolidation of FV ₹1 to FV ₹10) | 200000 | other | split | p. 71, 72 | |
| 2025-10-10 | Ashok Kumar Sharma & Dimple Sharma (Loan Conversion) | 59900 | 1576 | promoter | preferential | p. 71, 72 |
| 2026-02-09 | Existing Shareholders (Bonus Issue 50:1) | 12995000 | other | bonus | p. 71, 72 |
Ceo: Tarun Sharma
Indirect Tax proceedings (GST demand for FY 2019-20) against the Company: 2 cases of Rs 0.6212 Cr. Criminal or other material proceedings against Company, Promoters, or Directors: Nil.
Auditor name: R K Jagetiya & Co., Chartered Accountants
Skin in game: 87.52%
Audit report for FY24 contains an emphasis of matter regarding the need to formally document the policies and procedures adopted for the internal financial controls system over financial reporting.
Auditor changed last 3y: Yes
Source: p. 1, 2, 71, 155, 167, 173, 237, 252, 253, 283, 284
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.
ROE of 59.1% is earned on modest leverage (equity multiplier 1.86x) — the return comes from margins and asset efficiency, not from gearing up the balance sheet.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
ROE 59.1% = net margin 8.6% × asset turnover 3.71x × equity multiplier 1.86x. Returns generated with low leverage are more durable through a downturn because there is no debt load magnifying a fall in earnings.
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.
Needs at least two financial years.
Needs two financial 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.
(net profit − operating cash flow) ÷ average total assets
(₹18 − ₹-7) cr ÷ average assets
30.5%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
8.4% × 2.61 × 1.86
40.9%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹26 cr ÷ ₹1 cr
26.00×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹22 cr ÷ ₹44 cr
0.50×
Read against the sector — infrastructure carries more than software.Needs two financial years.
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.
Models that need these lines are withheld rather than estimated: two comparable financial years. 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 characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
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 | FY2026 |
|---|---|
| Debtor days
How long customers take to pay | 100 |
| Inventory days
How long stock sits before it sells | 0 |
| Cash conversion cycle
Debtor + inventory − payable days | 100 |
| Working capital days | 51 |
The shape of the business over time (annual) — read the direction, not the single print.
| Metric | Sep 2025 |
|---|---|
| Revenue | 90 |
| Other Income | 0 |
| Expenses | 78 |
| Depreciation | 1 |
| Finance cost | 1 |
| Profit before tax | 10 |
| Net Profit | 8 |
| EPS | 380.50 |
| Item | FY2026 |
|---|---|
| Equity Capital | 13 |
| Reserves | 31 |
| Borrowings | 22 |
| Net block | 12 |
| CWIP | 3 |
| Investments | 0 |
| Total Assets | 82 |
| Line | FY2026 |
|---|---|
| Cash from operations | -7 |
| Cash from investing | -11 |
| Cash from financing | 19 |
| Free cash flow | -12 |
| Net change in cash | 1 |
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.
The same read, applied to the companies this one competes with.