Altman Z″
Needs current assets and current liabilities.
MANIPALHOS · Hospital & Healthcare Services · INE459N01021
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.
Manipal Health Enterprises Limited is the largest multispecialty hospital network in India by bed capacity, operating 49 hospitals with 13,037 licensed beds across 14 states, including strong regional leadership in Karnataka, Maharashtra, Goa, and eastern India. The company delivers comprehensive clinical care spanning outpatient treatment, diagnostics, and advanced inpatient care. Its clinical focus is anchored in tertiary and quaternary care, specifically across its 'CONGO-R' specialties (cardiac sciences, oncology, neurosciences, gastro sciences, orthopedics, and renal sciences), which contribute over 64% of its gross inpatient revenue. Manipal serves a highly diversified patient base, supported by an omnichannel lead-management stack and an extensive network of 11,064 doctors. The company's geographic footprint balances presence across metro and non-metro cities, allowing it to capture urban demand while receiving complex referrals from adjacent rural districts. What sets Manipal apart is its repeatable playbook for integrating large transformative acquisitions—such as AMRI Hospitals, Medica Synergie, and Sahyadri Hospitals—enabling rapid scale, robust operational leverage, and industry-leading profitability margins in the Indian private healthcare delivery market.
India's largest multispecialty hospital network by bed capacity (13,037 beds) with a highly successful, repeatable playbook for integrating major acquisitions, yielding industry-leading revenue growth (29.41% CAGR) and superior ROCE.
Manipal Health Enterprises Limited operates a pan-India network of multispecialty hospitals providing comprehensive inpatient, outpatient, and diagnostic healthcare services. The company earns revenue primarily through hospital services, including complex tertiary and quaternary care procedures, diagnostic services, and the sale of pharmacy products.
Source: RHP Our Business p. 223-228
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Hospital services | 94.71 | RHP p. 370, Note 21 |
| Pharmacy sales | 4.15 | RHP p. 370, Note 21 |
| Diagnostic services | 2.33 | RHP p. 370, Note 21 |
| Other operating revenue | 0.74 | RHP p. 370, Note 21 |
The Indian healthcare delivery market is experiencing robust expansion, driven by rising life expectancy, increasing incidence of non-communicable and lifestyle diseases, expanding health insurance coverage, and rising medical tourism. The market is predominantly skewed toward private healthcare providers, who are expanding infrastructure to meet the demand for high-quality, specialized treatments. Cardiac sciences and oncology represent the largest specialty segments. For leading pan-India chains like Manipal, growth is propelled by the growing need for complex tertiary and quaternary care, digital healthcare integration, and ongoing industry consolidation, where large networks acquire regional players to deepen micro-market penetration and leverage economies of scale.
Growth rate: 11.5-13.5% CAGR (FY25-30, private hospitals)
Market size: ₹7.6-7.8 trillion (FY26)
Sector slug: healthcare-delivery
Source: RHP Industry Overview p. 188
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Apollo Hospitals Enterprise Ltd | 73.23 | 17.61 | p. 160 | ||
| Fortis Healthcare Ltd | 80.12 | 8.68 | p. 160 | ||
| Max Healthcare Institute Ltd | 87.63 | 11.47 | p. 160 | ||
| Aster DM Healthcare Limited | 85.94 | 4.39 | p. 160 | ||
| Global Health Limited | 63.85 | 15.68 | p. 160 | ||
| Krishna Institute of Medical Sciences Limited | 54.34 | 15.55 | p. 160 | ||
| Narayana Hrudayalaya Limited | 57.06 | 27.88 | p. 160 |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| FY26 | 62.023 | 916.519 | 8.87% | 10335.751 | yes | 4954.441 | |
| FY25 | 53.001 | 1081.672 | 13.12% | 8242.25 | yes | 904.082 | |
| FY24 | 48.139 | 533.203 | 8.64% | 6171.632 | yes | -250.209 |
The measures this sector is actually judged on, as disclosed in the document. No feed supplies these.
Written before listing, answered from the document itself.
Where is the money going?
The Offer includes a Fresh Issue of ₹80,000 million. The proceeds are heavily weighted toward deleveraging: ₹55,527.60 million will be used to repay/prepay outstanding borrowings of subsidiary Manipal Hospitals Private Limited, and ₹5,740.00 million will be used to acquire a minority stake in step-down subsidiary Sahyadri Hospitals Private Limited.
RHP p. 146
How concentrated is the geographic and payor base?
Geographically, the company relies heavily on Karnataka, which generated 46.40% of its operating revenue in FY26. From a payor perspective, 49.68% of gross inpatient revenue in FY26 came from Insurance/TPAs, followed by Cash/Self-pay at 30.33%, and Government Schemes at 13.78%.
RHP p. 79, 305
Is it profitable and growing?
Yes. Revenue from operations grew rapidly from ₹61,716.32 million in FY24 to ₹103,357.51 million in FY26. Concurrently, Profit After Tax increased from ₹5,332.03 million to ₹9,165.19 million, yielding an Adjusted EBITDA margin of 25.58% and a Return on Capital Employed (ROCE) of 21.88% in FY26.
RHP p. 399, 588
What sits in the footnotes / contingent liabilities?
The company reported ₹1,463.09 million in contingent liabilities as of FY26, primarily consisting of disputed direct/indirect tax demands (₹1,041.43 million) and patient compensation claims (₹180.54 million). Footnotes also disclose auditor CARO qualifications regarding the company's accounting software lacking required database-level audit trails, and ₹1,362.97 million in historical impairment write-offs related to goodwill and associate investments.
RHP p. 83, 134-138, 437
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2026-03-12 | MEMG International India Private Limited | 23820811 | 692.68 | promoter | p. 132 |
| 2026-07-14 | Manipal Research & Management Services International | 5123543 | 58.45 | promoter | p. 133 |
Ceo: Dilip Jose (Managing Director and Chief Executive Officer)
Against Company: 1 criminal, 40 tax, and 4 statutory/regulatory proceedings aggregating to ₹2,963.36 million. Against Subsidiaries: 9 criminal, 180 tax, 30 statutory/regulatory, and 3 civil proceedings aggregating to ₹5,041.54 million.
Promoters hold 69.86% of the pre-offer equity. The Offer is a mix of a massive ₹80,000 million Fresh Issue to deleverage the company and an Offer for Sale of up to 21.61 million shares by promoters and investors. Promoters will retain a significant majority stake and control post-listing.
CARO/Other Matter qualifications: The audit trail (edit log) facility was not enabled at the database level to log direct data changes in the accounting software used by the Company and several Subsidiaries. Further, CARO observations noted undisputed delays in statutory dues (bonus and provident fund) and significant loans (₹4,539 million) granted to a subsidiary that were settled via extension of further loans.
Source: RHP p. 104, 134-138, 146, 386, 448, 613
A change between the two filings is a disclosure in itself.
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.
Net margin has narrowed from 13.1% to 7.9% year-on-year — profitability per rupee of sales is shrinking.
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.
Quarter net margin 7.9% vs 13.1% four quarters earlier. Sustained compression signals pricing pressure, cost inflation, or mix deterioration.
Borrowings rose 151% over two years while the company also carries ₹2,675 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 ₹12,863 cr from ₹5,130 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Operating cash is 227% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹2,078 cr against trailing net profit ₹917 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Debt rose over 3 years, and most of it (129%) has turned into fixed assets and projects under construction — the borrowing is building the business.
Why this reading: A positive signal: leverage taken on is visibly becoming productive capacity, not disappearing.
New borrowing ₹10,679 cr largely matched by an asset build of ₹13,731 cr. Debt that funds capacity is a different thing from debt that funds nothing.
Free cash flow is positive and consistent — the business funds itself after capex.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Latest free cash flow ₹767 cr. Negative in only 0 of 6 years. A self-funding business needs less external capital and dilutes less.
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 -6.0% of assets. Free cash flow negative in 0 of 6 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 is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹7,417 cr ÷ ₹3,365 cr, over 6 years
2.20×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹917 − ₹2,078) cr ÷ average assets
-6.0%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
8.9% × 0.42 × 2.94
10.9%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹2,042 cr ÷ ₹864 cr
2.36×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹12,863 cr ÷ ₹8,426 cr
1.53×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +236% vs revenue +115%, FY2023 to FY2026
121pp 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.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
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.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 72.08% to 72.08% across these quarters.
FII held steady from 3.66% to 3.66% across these quarters.
MF held steady from 3.53% to 3.53% across these quarters.
Other held steady from 20.73% to 20.73% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 26 | 27 | 24 | 27 | 28 | 33 |
| Inventory days
How long stock sits before it sells | 20 | 28 | 23 | 30 | 29 | 29 |
| Payable days
How long the company takes to pay suppliers | 371 | 246 | 283 | 330 | 245 | 253 |
| Cash conversion cycle
Debtor + inventory − payable days | -325 | -190 | -236 | -273 | -188 | -190 |
| Working capital days | -95 | -113 | -56 | -59 | -40 | -70 |
| ROCE %
Return on capital employed | — | 18.0% | 19.0% | 19.0% | 16.0% | 12.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 1,813 | 3,975 | 4,806 | 6,172 | 8,242 | 10,336 |
| Other income | -47 | 293 | -48 | -86 | 134 | 111 |
| Depreciation | 183 | 256 | 315 | 397 | 507 | 680 |
| Finance cost | 205 | 326 | 329 | 455 | 512 | 864 |
| Profit before tax | -105 | 632 | 586 | 745 | 1,242 | 1,178 |
| Net profit (owners) | -138 | 542 | 429 | 533 | 1,082 | 917 |
| EPS (₹) | -20.12 | 71.63 | 56.73 | 70.50 | 27.65 | 7.56 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 2,238 | 2,882 | 3,091 |
| Other Income | 30 | 27 | 59 |
| Expenses | 1,651 | 2,191 | 2,354 |
| Depreciation | 141 | 185 | 187 |
| Finance cost | 132 | 289 | 293 |
| Profit before tax | 344 | 244 | 315 |
| Net Profit | 254 | 187 | 243 |
| EPS | 2.17 | 1.51 | 1.96 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 69 | 76 | 76 | 76 | 77 | 236 |
| Reserves | 1,064 | 2,732 | 3,166 | 3,940 | 5,770 | 8,190 |
| Borrowings | 1,575 | 2,017 | 2,184 | 5,130 | 6,385 | 12,863 |
| Net block | 2,278 | 4,582 | 4,784 | 6,934 | 9,826 | 18,753 |
| CWIP | 412 | 1,089 | 1,033 | 1,266 | 614 | 795 |
| Investments | 551 | 768 | 1,038 | 1,121 | 1,776 | 2,675 |
| Total Assets | 4,024 | 7,346 | 7,763 | 10,757 | 13,890 | 24,735 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 426 | 805 | 1,149 | 1,389 | 1,570 | 2,078 |
| Cash from investing | -188 | -1,711 | -994 | -870 | -2,544 | -7,025 |
| Cash from financing | -280 | 941 | -144 | -250 | 904 | 4,954 |
| Free cash flow | 334 | 629 | 823 | 1,394 | 520 | 767 |
| Net change in cash | -42 | 34 | 12 | 268 | -70 | 8 |
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.