SHFA - A hidden Gem with its own MOAT on PSX.

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📊 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.

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