Buy Max Healthcare, target price Rs 360: HDFC Securities

HDFC Securities has buy call on Max Healthcare Institute Ltd. with a target price of Rs 360. The current market price of Max Healthcare Institute is Rs 342.95.

Time period given by analyst is one year when Max Healthcare Institute Ltd. price can reach defined target.
Max Healthcare Institute Ltd., incorporated in the year 2001, is a Large Cap company (having a market cap of Rs 32368.82 Crore) operating in Hospitals & Allied Services sector.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1026.13 Crore, up 23.55 % from last quarter Total Income of Rs 830.54 Crore and up 272.35 % from last year same quarter Total Income of Rs 275.58 Crore. Company reported net profit after tax of Rs 146.92 Crore in latest quarter.

Investment Rationale
The brokerage believes Max is entering a high growth phase led by expansion at Saket (Delhi) and Nanavati (Mumbai). With margin drivers in place, the brokerage forecasts strong growth of ~29% EBITDA CAGR over the next five years. Its strong balance sheet and operating cash flow generation is likely to support organic and inorganic initiatives.