Nephrocare Health Services Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Nephrocare Health Services Ltd trades at ₹682, in a confirmed uptrend and 28 weeks into that stage. That is +18.0% against its own 200-day average. It sits at 78% of a 52-week range of ₹449 to ₹748. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (2 weeks and counting).

Today the stock is in a confirmed uptrend — week 28 of stage 2, confirmed. At ₹682 it trades +18.0% versus its 200-day average and sits at 78% of its 52-week range (₹449–₹748).

Against the market, two honest reads. Cumulative: over the last 7 months the stock moved +52% while the NIFTY 500 moved −2% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (2 weeks and counting; last ahead the week of 2026-07-17) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Nephrocare Health Services Ltd trades at 91.5× P/E, about the priciest it has ever traded. Its long-run median P/E is 1.7×, measured across 0.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 91.5× is about the priciest it has ever traded, against a long-run median of 1.7× measured over 0.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Nephrocare Health Services Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 4 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

53.6/100 — rank 2 of 7 in Hospitals/Medical Services · 52% evidence confidence

Nephrocare Health Services Ltd scores 53.6 out of 100 against the 7 companies it is compared with in Hospitals/Medical Services, ranking 2. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 17.6 + 12 + 14 + 10 = 53.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Nephrocare Health Services Ltd reported ₹266 Cr of revenue in the Mar 26 quarter, +21.5% year on year. That is the 2nd straight quarter of year-on-year growth. Over 5 years it has compounded at 28.4% a year. The last full year, FY26, came in at ₹999 Cr. The last four reported quarters add to ₹991 Cr.

FY26 revenue came in at ₹999 Cr (+32.1% on the year), capping 5 years at 28.4% compound. The latest quarter (Mar 26) printed ₹266 Cr, +21.5% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +26.8% growth against the decade's 28.4% — the current year is running slower than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Nephrocare Health Services Ltd's operating margin is 19.0% in the Mar 26 quarter, −4.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across the last four quarters the operating margin has moved −3.0 percentage points. The current quarter sits inside that band.

The latest quarter's operating margin is 19.0%, −4.0 pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 5.0%–23.0%, and FY26's 23.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −3.3 pp year on year while gross margin went +2.6 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Nephrocare Health Services Ltd earned ₹30.0 Cr of net profit in the Mar 26 quarter, +20.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹77.0 Cr. The 5-year compound rate is 138.4%. That is 11.3% of the quarter's revenue. The same quarter a year earlier earned ₹20.0 Cr.

Mar 26 profit was ₹30.0 Cr, +20.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹77.0 Cr (+14.9%), and the 5-year compound rate is 138.4%.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 246% of Nephrocare Health Services Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹233 Cr of operating cash against ₹77.0 Cr of profit. After ₹212 Cr of capital spending, ₹21.0 Cr was left as free cash.

FY26: operating cash of ₹233 Cr against reported profit of ₹77.0 Cr, leaving free cash of ₹21.0 Cr after ₹212 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 246% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 246%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 2.1× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Nephrocare Health Services Ltd's cash conversion cycle runs 116 days in FY26, up from 110 days in FY21. Capital spending ran ₹469 Cr over the last 3 years. At FY26 sales of ₹999 Cr each day of that cycle holds about ₹2.7 Cr, so roughly ₹317 Cr sits inside the business at any moment.

FY26: debtors at 116 days, inventory at 53 days — roughly 1.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 116 days, looser than FY21's 110.

The full loop: cash goes out to suppliers and production on day 0; stock waits 53 days to sell; customers pay about 116 days after that; and suppliers themselves are paid at 230 days — netting out to the 116-day cycle.

In money terms: at FY26 sales of ₹999 Cr, each day of the cycle holds about ₹2.7 Cr — so the 116-day loop keeps roughly ₹317 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹469 Cr over the last 3 fiscal years against ₹219 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹6.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Nephrocare Health Services Ltd earns a ROCE of 15% in FY26. That is up from a trough of −4% in FY22. Return on invested capital clears the cost of that capital by +2.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 7.7% net margin on 0.68× asset turns.

FY26 ROCE is 15%, recovered from a FY22 trough of −4% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.7% net margin × 0.68× asset turns × 1.31× balance-sheet leverage ≈ 6.9% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 14.2% − 12.0% = a +2.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Nephrocare Health Services Ltd carries total debt of ₹80.0 Cr against shareholder equity of ₹1,116 Cr as of Mar 26, a debt-to-equity of 0.07 — effectively unlevered. On the annual view that ratio went from 0.44 in FY25 to 0.07 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹80.0 Cr against shareholder equity of ₹1,116 Cr — a debt-to-equity of 0.07. On the annual view, debt-to-equity went from 0.44 (FY25) to 0.07 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Nephrocare Health Services Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Nephrocare Health Services Ltd: the Z-score reads 10.36. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 10.36 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 10.36.

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