Max Healthcare, J Kumar Infra, TeamLease, Mankind Pharma Q4 Results Review: HDFC Securities

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HDFC Securities Institutional Equities

Max Healthcare Institute - Steady Q4: expansion on track; margin under check

Max Healthcare Institute Ltd.'s Ebitda grew 28% YoY, with 29% YoY sales growth (hospital sales up 29%; acquired/new unit sales at Rs 3.9 billion; and Max Labs up 21%). Margin corrected by 77 bps to 27.2% due to integration of new/acquired hospitals. Average revenue per occupied bed was flat YoY (+7% growth existing units) and occupancy was at 75%.

The company expects strong growth in the hospital business, led by the addition of 1,500+ beds and margin improvement for brownfield hospitals (cost synergies) in FY26.

However, we believe the greenfield hospital (at Gurgaon) will drag the margin. It expects new units to see faster growth with improving case mix and expanding clinical programs (adding high-end surgery capabilities and oncology bunkers across key hospitals).

Its expansion plan for the next one-two years is on track. Its Dwarka hospital (Delhi) achieved break-even in Dec’24 and positive Ebitda in Q4 FY25; it expects to commission an oncology block (~60 beds) in FY26, which will help drive Ebitda growth.

While we expect the company to see 24/25% sales/Ebitda CAGRs over FY25-27E, the margin will remain flat at ~26.8% in FY27E (vs ~26.4% in FY25) due to the commissioning of new hospitals.

Factoring in Q4, we tweaked Ebitda for FY26/27E and revised the SoTP to Rs 1,120 (blended 31x FY27E EV/Ebitda). Reduce stays.

J Kumar Infraprojects - Performance in line

J Kumar Infraprojects Ltd. reported a strong quarter, with revenue/Ebitda/adjusted profit after tax at 16.3/2.4/1.1 billion, miss/beat to our estimates by -0.4/-1.5/+1.3%.

As of March 31, 2025, the order book stood at Rs 222.4 billion (~3.9x FY25 revenue), while the order Inflow for FY25 stood at Rs 47 billion. Moreover, it has L1 positions worth Rs 42.5 billion, which are expected to be converted in Q1 FY26. Further, it guided for an order inflow of Rs 60-80 billion for FY26, with the current bid pipeline at Rs 250 billion. The FY26/27 revenue guidance is at Rs 65/75 billion (+15% YoY of FY25), and it maintains its Ebitda margin guidance at 15-16%. J Kumar is keen on bidding for large-scale projects in Maharashtra, including the Mumbai/Pune/Thane metro projects.

We believe that it is well-placed to incur capex with a mix of debt and internal accruals. We maintain our Add rating on the stock, with an increase in target price to Rs 1,052/share. (14x-FY27E).

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