Fortis Healthcare Limited (FORTIS.NS) fair value

ACCE thesis

Fortis Healthcare runs multi-specialty hospitals in India under the Fortis and Fortis Escorts brands, with the core earnings coming from tertiary care in cardiac, oncology, orthopaedics and transplant services, alongside diagnostics through its Agilus unit. The advantage is scale in a fragmented market: an operating margin of 16.3% and a gross margin of 59.4% sit well above what most regional hospital operators manage, and revenue is growing 17.5% a year. The near-term growth driver is bed expansion and the ramp of newer hospitals, which lifts the revenue base without requiring the same capital intensity as a greenfield build would suggest. The stock trades at 52.4x trailing earnings but 31.9x forward, so the market is pricing in a sharp step-up in earnings, and the case for a deeper look rests on whether margins hold as the newer capacity fills. Return on equity is not available in the data, which is a gap to close before sizing any position.