'Buy' Max Healthcare To Get Upto 22% Upside Says Motilal Oswal, Here's Why

Stocks to Buy: The brokerage believes that Max’s expansion via a combination of brownfield, greenfield and inorganic will drive strong revenue growth.

Stocks to Buy: Max Healthcare plans to increase its total bed capacity by 84% (3,332 beds) to 7,130 by FY27 for a capex of Rs 73 billion.

Max Healthcare Institute in Delhi.(Source: Company website)

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Motilal Oswal Report

Stocks to Buy: We have a Buy rating on Max Healthcare Institute Ltd. with our SoTP-based target price of Rs 1,380.

We expect a compound annual growth rate of 18.4%/16.2%/20.5% in revenue/Ebitda/PAT over FY25-27. We value Max on the SoTP basis (35 times enterprise value/Ebitda for hospital business, 26 times EV/Ebitda for Maxlab business, six times EV/sales for Max@home) to arrive at our target price of Rs 1,380.

We remain positive on Max on the back of a robust industry outlook in its focus markets (Delhi, UP, Maharashtra, Punjab, Uttarakhand, Haryana).  Along with efficient execution, Max is tripling its bed capacity over the next five years, thus providing strong headroom for growth.

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Motilal Oswsal Max Healthcare Update.pdf
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Also Read: ICICI Bank - Well Poised To Deliver Sustainable Growth, Profitability, 'Buy' Reiterates Motilal Oswal

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