Krishna Institute of Medical Sciences Ltd
Krishna Institute of Medical Sciences Ltd
HealthcareKrishna Medical Institution Ltd (KIMS) was Incorporated in the year 1973 and is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities.
KIMS enjoys unanimous analyst buy ratings (13/13) and strong revenue growth of 21-29% CAGR, but the stock trades at an extremely expensive PE of 130.8x with a TTM profit decline of -32%. At 14.09x book value with no dividend and declining promoter holding, the risk-reward is unfavorable for fresh entry despite solid operational momentum.
Key Fundamentals
Technical Indicators
Key Insights
Strengths
2- Company is expected to give good quarter
- Company's median sales growth is 21.9% of last 10 years
Weaknesses
4- Stock is trading at 14.2 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Company might be capitalizing the interest cost
- Promoter holding has decreased over last 3 years: -4.73%
Growth Rate
AI Analysis — Bull vs Bear
KIMS enjoys unanimous analyst buy ratings (13/13) and strong revenue growth of 21-29% CAGR, but the stock trades at an extremely expensive PE of 130.8x with a TTM profit decline of -32%. At 14.09x book value with no dividend and declining promoter holding, the risk-reward is unfavorable for fresh entry despite solid operational momentum.
- Unanimous analyst consensus with 100% buy ratings (13 out of 13 analysts) signals strong institutional conviction
- Compounded sales growth of 29% TTM and 21% 3-year CAGR demonstrates robust top-line momentum in a secular healthcare growth market
- 10-year median sales growth of 21.9% reflects consistent long-term revenue compounding ability
- Stock CAGR of 30% over 3 years and 27% over 1 year shows sustained wealth creation for shareholders
- 5-year ROE average of 18% indicates historically efficient capital deployment in a capital-intensive hospital business
- Market cap of Rs 31,745 Cr provides adequate liquidity and institutional ownership eligibility
- Company is expected to deliver a good upcoming quarter, suggesting near-term earnings catalyst
- 10-year compounded profit growth of 25% shows long-term earnings power despite recent cyclical softness
- PE ratio of 130.8x is excessively expensive even for a high-growth healthcare name, leaving minimal margin of safety
- TTM profit declined -32% year-over-year, indicating severe near-term earnings compression despite revenue growth
- 3-year compounded profit CAGR of -9% shows earnings have been shrinking on a medium-term basis
- Price-to-book of 14.09x is extremely rich and suggests the stock prices in years of flawless execution
- Zero dividend yield despite repeated profitability signals poor capital return policy for shareholders
- Promoter holding has decreased by 4.73% over 3 years, raising concerns about insider confidence
- Last year ROE dropped to 11% from 5-year average of 18%, a 39% deterioration in return efficiency
- Company might be capitalizing interest costs, potentially flattering reported profitability and asset values
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- FY26 net profit down 37% Jun 9
Full-year net profit declined 37.22% to ₹241.40 crore against ₹384.50 crore in the previous year, despite revenue growing 28.65% to ₹3,904.60 crore.
- EBITDA margins compressing sharply Jun 9
Operating margins fell to 19.22% in Q3 FY26 from 24.85% in the prior quarter, reflecting operational challenges from new units and expansion activities.
- Q4 FY26 profit crashes 58% Jun 13
Consolidated net profit declined 58.25% to ₹42.50 crore in Q4 FY26 despite a 34.85% revenue increase to ₹1,074.60 crore, indicating severe margin pressure.
- Potential equity dilution ahead Jun 16
KIMS opened a QIP at ₹771.73 floor price targeting ₹1,500 crore raise, and separately approved ₹599.99 crore in warrants to promoters — combined dilution could be significant.
- ₹600 cr promoter warrant issue Jun 13
Board approved 77.02 lakh warrants at ₹779/warrant to promoter group aggregating ₹599.99 crore, signaling strong promoter confidence. Stock surged 22.05% on the news.
- ₹1,500 cr QIP for growth Jun 9
Board approved a ₹1,500 crore QIP to strengthen the balance sheet and fund expansion across 25 hospitals in 6 states, with new capacity in Chennai and Amravati.
- Revenue growth robust at 29% Jun 9
Revenue grew 29.17% YoY to ₹997.70 crore in Q3 FY26 and 28.65% for full-year FY26 to ₹3,904.60 crore, demonstrating strong top-line momentum from network expansion.
- Promoter stake rising to 35.35% Jun 13
Post warrant conversion, promoter and promoter group holding will increase from 34.11% to 35.35%, reinforcing alignment with minority shareholders.
- ₹57 cr block trade on NSE Jun 22
Approximately 7.10 lakh shares traded at ₹807.40/share for ₹57.31 crore, indicating institutional-level activity in the stock.
- ₹17 cr block trade on NSE Jun 10
About 2.22 lakh shares traded at ₹781.90/share for ₹17.36 crore, reflecting institutional participation.
- FY26 audited results filed Jun 16
KIMS filed audited standalone and consolidated financials for FY26 with statutory auditors confirming adequate internal financial controls.
- Promoter pledge status disclosed Jun 11
No new encumbrances reported for FY26; Dr. Bhaskara Rao Bollineni holds 1.4 crore pledged shares with no change in status.
- Analyst meets scheduled Aug 13-14 Jun 5
KIMS will host analyst and institutional investor meetings in Mumbai on August 13-14, 2026. No UPSI will be shared.
- Board met Jun 13 for fundraise Jun 10
Board meeting held June 13 to consider raising funds via equity shares or other securities, with EGM planned for July 9 for shareholder approval.
TL;DR: KIMS is growing revenue aggressively at ~29% YoY driven by hospital network expansion to 25 facilities, but profitability has deteriorated sharply with FY26 net profit down 37% and EBITDA margins compressing from ~24% to ~19%. The company is raising ~₹2,100 crore combined (QIP + warrants) to fund growth, with strong promoter participation signaling confidence. The key question is whether margin recovery materializes as new hospitals mature — if it does, the revenue base supports significant earnings upside, but near-term dilution and profit decline remain overhangs.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 576 | 606 | 652 | 606 | 634 | 688 | 777 | 772 | 797 | 872 | 961 | 998 | 1,075 |
| Expenses | 413 | 449 | 475 | 459 | 475 | 509 | 559 | 585 | 599 | 679 | 757 | 799 | 868 |
| Operating Profit | 163 | 157 | 177 | 147 | 159 | 179 | 218 | 187 | 198 | 193 | 204 | 199 | 206 |
| OPM % | 28% | 26% | 27% | 24% | 25% | 26% | 28% | 24% | 25% | 22% | 21% | 20% | 19% |
| Other Income | 5 | 3 | 3 | 3 | 4 | 5 | 5 | 18 | 15 | 7 | 4 | 5 | 1 |
| Interest | 5 | 9 | 9 | 12 | 16 | 18 | 20 | 26 | 27 | 33 | 45 | 57 | 68 |
| Depreciation | 35 | 32 | 33 | 35 | 46 | 39 | 41 | 45 | 53 | 53 | 66 | 79 | 85 |
| PBT | 127 | 119 | 139 | 102 | 100 | 127 | 162 | 135 | 134 | 114 | 97 | 69 | 55 |
| Tax % | 22% | 27% | 27% | 25% | 28% | 25% | 26% | 31% | 21% | 25% | 26% | 24% | 40% |
| Net Profit | 99 | 87 | 101 | 77 | 72 | 95 | 121 | 92 | 106 | 85 | 72 | 52 | 33 |
| EPS in Rs | 2.33 | 2.02 | 2.3 | 1.8 | 1.64 | 2.16 | 2.68 | 2.22 | 2.54 | 1.96 | 1.67 | 1.33 | 1.06 |
Profit & Loss
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 512 | 567 | 664 | 918 | 1,123 | 1,330 | 1,651 | 2,198 | 2,498 | 3,035 | 3,905 |
| Expenses | 403 | 450 | 593 | 833 | 872 | 953 | 1,126 | 1,587 | 1,850 | 2,242 | 3,103 |
| Operating Profit | 109 | 118 | 71 | 85 | 251 | 377 | 524 | 611 | 648 | 793 | 802 |
| OPM % | 21% | 21% | 11% | 9% | 22% | 28% | 32% | 28% | 26% | 26% | 21% |
| Other Income | 5 | 3 | 37 | 6 | 5 | 9 | 27 | 41 | 13 | 43 | 18 |
| Interest | 37 | 32 | 88 | 49 | 44 | 37 | 22 | 37 | 55 | 100 | 202 |
| Depreciation | 36 | 35 | 40 | 56 | 71 | 70 | 73 | 129 | 147 | 177 | 283 |
| PBT | 41 | 53 | -20 | -15 | 141 | 279 | 457 | 485 | 460 | 558 | 334 |
| Tax % | 32% | 37% | 126% | 223% | 18% | 26% | 25% | 25% | 27% | 26% | 28% |
| Net Profit | 28 | 33 | -46 | -49 | 115 | 205 | 344 | 366 | 336 | 415 | 242 |
| EPS in Rs | 0.76 | 0.91 | -1.32 | -1.28 | 3.2 | 5.19 | 8.32 | 8.41 | 7.75 | 9.61 | 6.03 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 70 | 72 | 50 | 74 | 74 | 78 | 80 | 80 | 80 | 80 | 80 |
| Reserves | 193 | 255 | -209 | 466 | 524 | 786 | 1,307 | 1,590 | 1,748 | 2,058 | 2,167 |
| Borrowings | 256 | 280 | 753 | 336 | 369 | 316 | 257 | 678 | 1,355 | 2,557 | 4,253 |
| Other Liabilities | 146 | 167 | 359 | 237 | 228 | 253 | 260 | 553 | 636 | 995 | 1,258 |
| Total Liabilities | 665 | 774 | 954 | 1,114 | 1,194 | 1,433 | 1,904 | 2,901 | 3,820 | 5,689 | 7,759 |
| Fixed Assets | 515 | 518 | 755 | 863 | 916 | 931 | 1,005 | 1,766 | 2,434 | 3,348 | 5,710 |
| CWIP | 2 | 64 | 0 | 0 | 2 | 9 | 21 | 477 | 600 | 1,214 | 606 |
| Investments | 11 | 14 | 0 | 0 | 0 | 0 | 332 | 68 | 157 | 99 | 103 |
| Other Assets | 137 | 177 | 199 | 250 | 276 | 493 | 546 | 590 | 629 | 1,028 | 1,339 |
| Total Assets | 665 | 774 | 954 | 1,114 | 1,194 | 1,433 | 1,904 | 2,901 | 3,820 | 5,689 | 7,759 |
Cash Flow
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 95 | 82 | 106 | 134 | 202 | 356 | 324 | 432 | 521 | 582 | 511 |
| Investing | -41 | -100 | -64 | -110 | -125 | -354 | -412 | -416 | -753 | -1,116 | -1,452 |
| Financing | -65 | 24 | -39 | -27 | -44 | 10 | 61 | 20 | 217 | 543 | 940 |
| Net Cash Flow | -11 | 5 | 3 | -3 | 32 | 12 | -26 | 36 | -15 | 9 | -1 |
| Free Cash Flow | 61 | -18 | 49 | 57 | 150 | 262 | 154 | -140 | -125 | -380 | -902 |
| CFO/OP | 88 | 80 | 192 | 195 | 102 | 104 | 86 | 87 | 102 | 91 | 83 |
Ratios
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 47 | 59 | 59 | 49 | 43 | 30 | 28 | 42 | 43 | 48 | 52 |
| Inventory Days | 36 | 43 | 46 | 47 | 44 | 30 | 37 | — | — | — | 44 |
| Days Payable | 194 | 207 | 215 | 181 | 177 | 167 | 133 | — | — | — | 146 |
| Cash Conversion Cycle | -111 | -105 | -110 | -85 | -91 | -106 | -67 | 42 | 43 | 48 | -50 |
| Working Capital Days | 11 | 26 | -333 | -15 | -15 | -31 | -3 | 8 | -5 | -29 | -35 |
| ROCE % | — | 15% | 11% | 5% | 20% | 29% | 34% | 24% | 17% | 15% | 9% |
Documents
Frequently Asked Questions about Krishna Institute of Medical Sciences Ltd
What does Krishna Institute of Medical Sciences Ltd do?
Where is Krishna Institute of Medical Sciences Ltd (KIMS) listed?
Which sector does Krishna Institute of Medical Sciences Ltd belong to?
What is the PE ratio of Krishna Institute of Medical Sciences Ltd?
What is the 52-week high and low of Krishna Institute of Medical Sciences Ltd?
What is the Return on Equity (ROE) of Krishna Institute of Medical Sciences Ltd?
How can I research Krishna Institute of Medical Sciences Ltd on Tapetide?
Company Information
Krishna Medical Institution Ltd (KIMS) was Incorporated in the year 1973 and is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities.