Reduce Max Healthcare, target price Rs 1,020: HDFC Securities

HDFC Securities has a reduce call on Max Healthcare with a target price of Rs 1020. The current market price of Max Healthcare Institute is Rs 1080.85. Max Healthcare, incorporated in 2001, is a Small Cap company with a market cap of Rs 104553.88 crore, operating in the Hospitals & Allied Services sector.

Max Healthcare's 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. The company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 97 crore shares outstanding.

Investment Rationale
Strong sales growth is largely led by the steady growth in the company' existing network and integration of acquired hospitals (Lucknow, Noida, and Nagpur). Max Lab to see steady growth. Integration impact of lower margin acquired hospitals and break-even at Dwarka (Delhi) to drag down the overall margin for the company.

Promoter/FII Holdings
Promoters held 23.74 per cent stake in the company as of 31-Mar-2025, while FIIs owned 54.74 per cent, DIIs 17.59 per cent.