'Buy' Max Healthcare Shares, Maintains PL Capital Post Inline Q1 Results — Check Target Price

Max Healthcare's consolidated revenues came at Rs 24.6 billion (up 27% YoY); of which Rs 1.34 billion, Rs 1.1 billion, Rs 970 million and Rs 550 million were contributed by Noida, Lucknow, Dwarka and Nagpur units respectively. Base business revenue growth was 13% while including Lucknow and Nagpur were at 16% YoY.

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PL Capital Report

Max Healthcare Institute Ltd. reported healthy Ebitda growth of 23% YoY to Rs 6.14 billion; in line with our estimates. The company showed phenomenal growth with ~19% Ebitda CAGR over FY22-25.

We expect pick-up in the growth momentum given-

1. strong expansion plans (+3700 additional beds over FY25-28E),

2. improving payor mix and

3. Bolt on acquisitions like recently added in Lucknow, Nagpur and Noida.

Operational efficiency has also been commendable, especially in competitive markets like NCR. Our FY26E/27E Ebitda remains unchanged and we expect Ebitda/PAT to grow ~2x over FY25-28E.

We ascribe 36x EV/Ebitda based on FY27E. Maintain ‘Buy’ rating with target price of Rs. 1,355/share.

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