Emcure Pharma Stock Price Analysis and Quick Research Report. Is Emcure Pharma an attractive stock to invest in?
The Indian healthcare sector is expected to reach US$ 372 billion by 2022, driven by rising incomes, greater health awareness, lifestyle diseases and increasing access to insurance. Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The structure of the healthcare delivery system in India consists of three broad segments: Primary care, Secondary care, and Tertiary care.
- Primary care is the first point of contact between the population and the healthcare service providers. For example, Sub-center (SC), Primary Health Centre (PHC) and Community Health Centre (CHC) which is more relevant to rural areas (PHC’s).
- Secondary care providers inpatient as well as outpatient medical services and includes simple surgical procedures. For example, District level & Mid-sized hospitals.
- Tertiary care is the third level of the healthcare delivery system in the country. These hospitals are specialized consultative healthcare infrastructure. For example, Single specialty and Multi-specialty hospitals.
While healthcare services are offered by the public as well as private sectors, in urban as well as rural areas, generally people prefer private hospitals over public hospitals for treatment of diseases, illness, and sickness. So, let’s look into Emcure Pharma and its performance over the period of time. Emcure Pharma stock price today is Rs 1314.15.
- Operating cash flow ratio: It measures the adequacy of a company’s cash generated from operating activities to pay off short-term financial obligations. Emcure Pharma cash from the operating activity was Rs 584.973 Cr.
- Financial Strength: Health care organizations usually have high debt loads and low equity capital in their balance sheet. So, Debt to Equity ratio is important to analyze the company’s sustainability. Emcure Pharma has a Debt to Equity ratio of 0.732 , which is a strong indication for the company.
- EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Emcure Pharma , the EPS growth was 0.3164 % which is bad for the company.
- Operating profit margin: It determines a company's potential earnings. It assesses how well-managed a company with respect to its basic overhead costs and other operating expenses, Emcure Pharma has OPM of 12.6340076422632 % which is a bad sign for profitability.
- ROE: Emcure Pharma have a poor ROE of 8.59 %. ROE is an important financial parameter for hospitals & health care companies because they expand and grow rapidly. Therefore, ROE measures how efficiently a shareholder's fund is used for generating profits.
- Share Price: - The current share price of Emcure Pharma is Rs 1314.15. One can use valuation calculators of ticker to know if Emcure Pharma share price is undervalued or overvalued.