Equal Weight Max Healthcare, target price Rs 1,315: Axis Securities

Axis Securities has an equal weight call on Max Healthcare Institute with a target price of Rs 1,315. The current market price of Max Healthcare Institute Ltd. is Rs 966.4 . Max Healthcare Institute Ltd., incorporated in the year 2001, is a Small Cap company (having a market cap of Rs 94374.58 Crore) operating in Hospitals & Allied Services sector.

Max Healthcare Institute Ltd. key products/revenue segments include HealthCare Services, Other Operating Revenue and Drugs & Pharmaceuticals for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 1901.61 crore, up 8.77% from last quarter Total Income of Rs 1748.30 crore and up 37.70% from last year same quarter Total Income of Rs 1380.99 crore. The company has reported net profit after tax of Rs 238.80 crore in the latest quarter.

The company's top management includes Mr.Abhay Soi, Mr.Pranav Amin, Mr.Michael Thomas Neeb, Mr.K Narasimha Murthy, Mr.Anil Kumar Bhatnagar, Mr.Narayan K Seshadri, Ms.Amrita Gangotra, Mr.Mahendra Gumanmalji Lodha, Dr.Pranav C Mehta. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 97 crore shares outstanding.

Investment Rationale
Max Healthcare's revenue mix remains well balanced, with sustained growth in both institutional and international patient segments. The recent rise in institutional business share is expected to stabilise as higher-value payer segments expand. While new hospital ramp-ups may have a short-term margin impact, this should ease as these facilities scale operations. Profitability in Lucknow and Nagpur is expected to improve further, driven by higher occupancy rates and the introduction of new clinical programmes. Axis Securities values the stock at a multiple of 35x EV/EBITDA FY27E.

Promoter/FII Holdings
Promoters held 23.74 per cent stake in the company as of 31-Dec-2024, while FIIs owned 56.93 per cent, DIIs 15.55 per cent.