Narayana Hrudayalaya Ltd. (NH) AI Stock Analysis

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Narayana Hrudayalaya Ltd.

(NSE:NH)

Select Model

Rating:62Neutral

Price Target:INR 1,762.00▲(2.46% Upside)

Action:reiterated

Date:08/26/26

The score is driven primarily by strong financial momentum (accelerating revenue growth and improved cash generation), tempered by higher FY2026 leverage and historically volatile free cash flow. Technical indicators are neutral-to-soft, and valuation is a key headwind due to a high P/E and low dividend yield.

Positive Factors

Accelerating Revenue GrowthRevenue growth accelerated materially, indicating stronger patient-care activity and expanding demand across Narayana Health’s hospital network. Sustained top-line momentum can support operating leverage, fund capacity expansion, and reinforce the company’s position in tertiary and specialty healthcare over the next several quarters.

Negative Factors

Sharp Increase in LeverageThe sharp debt increase materially raises financial risk compared with prior years and reduces balance-sheet flexibility. Higher leverage can increase financing obligations and leave less room to absorb weaker operating conditions or fund additional expansion without relying more heavily on future cash generation.

Narayana Hrudayalaya Ltd. (NH) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 349.37B
Dividend Yield: 0.26%
Average Volume (3M): 35.79K
Price to Earnings (P/E): 42.9
Beta (1Y): 0.99
Revenue Growth: 71.40%
EPS Growth: 1.76%
Country: India
Employees: 11,234
Sector: General
Sector Strength: 55
Industry: Medical - Care Facilities

Narayana Hrudayalaya Ltd. Business Overview & Revenue Model

Company Description

Narayana Hrudayalaya Limited, established in 2000 and headquartered in Bengaluru, India, operates as a prominent provider of medical and healthcare services. The company oversees and manages a diverse range of healthcare facilities, encompassing hosp...

How the Company Makes Money

NH primarily makes money by delivering healthcare services through its hospitals and clinics, with revenue largely driven by patient-care activities. Key revenue streams typically include: (1) Inpatient services: room/bed charges, nursing and hospita...

Narayana Hrudayalaya Ltd. Financial Statement Overview

Summary

Strong and accelerating revenue growth (12.1% to 31.8%) and improved profitability versus earlier years, with FY2026 operating cash flow up (16.2B vs 9.9B) and free cash flow recovering to 7.5B. Offsetting positives, FY2026 leverage rose sharply (debt 58.6B vs 24.3B) and free cash flow has been volatile across recent years, increasing financial and execution risk.

Income Statement

82Very Positive

Balance Sheet

58Neutral

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	90.72B	78.96B	54.83B	48.90B	45.30B	37.01B
Gross Profit	35.68B	34.78B	21.12B	18.41B	16.76B	12.13B
EBITDA	18.03B	16.62B	12.82B	11.55B	9.77B	6.65B
Net Income	8.16B	8.06B	7.90B	7.89B	6.06B	3.42B
Balance Sheet
Total Assets	0	124.74B	72.65B	56.25B	41.62B	31.30B
Cash, Cash Equivalents and Short-Term Investments	25.20B	25.43B	16.27B	11.04B	6.51B	3.01B
Total Debt	0	58.57B	24.28B	16.27B	8.84B	7.23B
Total Liabilities	-45.40B	79.35B	36.37B	27.39B	20.30B	16.40B
Stockholders Equity	45.40B	45.37B	36.26B	28.84B	21.31B	14.89B
Cash Flow
Free Cash Flow	4.14B	5.98B	-961.81M	959.93M	5.63B	2.34B
Operating Cash Flow	6.90B	14.74B	9.86B	10.67B	10.85B	4.85B
Investing Cash Flow	-5.24B	-37.19B	-13.25B	-14.58B	-11.74B	-2.67B
Financing Cash Flow	-2.09B	25.07B	5.44B	4.88B	877.41M	-1.59B

Narayana Hrudayalaya Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1719.70

Price Trends

50DMA1808.63Negative

100DMA1874.92Negative

200DMA1834.93Negative

Market Momentum

MACD-30.48Negative

RSI45.60Neutral

STOCH75.45Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NH, the sentiment is Neutral. The current price of 1719.70 is above the 20-day moving average (MA) of 1709.11, below the 50-day MA of 1808.63, and below the 200-day MA of 1834.93, indicating a neutral trend. The MACD of -30.48 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NH.

Narayana Hrudayalaya Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ASTERDM	73Outperform	INR 595.70B	110.40	―	0.59%	15.70%	-2.76%
IN:NH	62Neutral	INR 351.44B	42.88	―	0.26%	71.40%	1.76%
IN:APOLLOHOSP	62Neutral	INR 1.21T	58.13	―	0.24%	17.20%	32.79%
IN:MAXHEALTH	60Neutral	INR 837.05B	57.45	―	0.23%	15.17%	1.63%
IN:MEDANTA	60Neutral	INR 341.22B	61.37	―	0.08%	21.27%	4.09%
IN:FORTIS	59Neutral	INR 581.17B	55.34	―	0.13%	17.50%	20.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:NH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NH	Narayana Hrudayalaya Ltd.	1719.70	-62.04	-3.48%
IN:APOLLOHOSP	Apollo Hospitals Enterprise Limited	8400.00	594.57	7.62%
IN:ASTERDM	Aster DM Healthcare Ltd.	683.40	4.80	0.71%
IN:FORTIS	Fortis Healthcare Ltd.	769.80	-259.46	-25.21%
IN:MAXHEALTH	Max Healthcare Institute Ltd	860.00	-284.47	-24.86%
IN:MEDANTA	Global Health Limited	1269.05	-6.25	-0.49%

Narayana Hrudayalaya Ltd. Corporate Events

Narayana Hrudayalaya Shareholders Approve Fee Revision for Consultant Surgeon via Postal Ballot

Oct 5, 2026

Narayana Hrudayalaya Ltd. has announced the results of a postal ballot conducted through remote e-voting, held between September 5 and October 4, 2026, under the provisions of the Companies Act and SEBI listing regulations. Shareholders approved an o...

Narayana Hrudayalaya Conducts 26th AGM via Virtual Platform in Line with SEBI, MCA Norms

Aug 14, 2026

Narayana Hrudayalaya Ltd. held its 26th Annual General Meeting on August 14, 2026, via video conferencing and other audio-visual means, in compliance with MCA and SEBI circulars and the Companies Act. The meeting was chaired by founder Dr. Devi Prasa...

Narayana Health Publishes Q1 FY27 Unaudited Results in Newspapers

Aug 2, 2026

Narayana Hrudayalaya Ltd., operating as Narayana Health, is a listed Indian healthcare services group headquartered in Bengaluru that runs a wide network of hospitals and medical facilities. The company provides multi-specialty tertiary care and posi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 26, 2026

Narayana Hrudayalaya Ltd. AI Stock Analysis

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