SHFA - A hidden Gem with its own MOAT on PSX.📊 Bullish Thesis: Shifa International Hospitals Ltd (PSX: SHFA)
Shifa International Hospitals continues to demonstrate strong fundamental performance across key financial metrics, supporting a bullish long-term outlook:
🔹 Growth Metrics (CAGR-based)
Revenue CAGR: 13.37%
Operating Profit CAGR: 23.47%
Net Income CAGR: 24.14%
These indicate a healthy expansion in top-line and bottom-line over the evaluated period. The high Operating Profit CAGR outpacing revenue growth shows strong cost control and operational efficiency.
🔹 Profitability Ratios
Operating Margin: 14.35%
Net Margin: 8.02%
Return on Invested Capital (ROIC): 8.47%
Margins remain solid, indicating good pricing power and disciplined cost management. ROIC near 8.5% confirms efficient capital allocation in a capital-intensive healthcare sector.
🔹 Cash Flow & Taxation
CCFO vs CPAT: ✅ Positive cash flow support
Tax %: 43.33% – indicates compliance and contribution at a healthy level
🔹 Other Key Financial Indicators
COGS %: 84.94% – consistent with healthcare service delivery models
TTM Diff: +204.08% – massive improvement in trailing twelve-months performance, likely due to post-COVID healthcare demand normalization and operational leverage.
I will wait till 390 price to take a bullish stance in this stock.
