Max Healthcare Q2 Results Review - Strong Growth Despite Negligible Expansion: Prabhudas Lilladher

Prabhudas Lilladher Report

Max Healthcare Institute Ltd. reported Ebitda of Rs 4.9 billion (up 13% QoQ) which came 7% above our estimates, aided by healthy average revenue per occupied bed at Rs 74,600 and better margins.

The company showed phenomenal growth in past two years and we expect this momentum to continue given-

1. strong expansion plans (+2000 additional beds over FY23-26E),

2. improving payor mix (15% revenue contribution from institutional by FY25E versus 17.9% now) and

3. scale-up in labs.

Max Healthcare's operational efficiency has also been commendable, especially in competitive markets like NCR.

Our FY24E/25E Ebitda increased by 5%/4% and we expect 18% Ebitda compound annual growth rate over FY23-26E. We ascribe 26 times enterprise value/Ebitda based on Sept 2025E Ebitda.

Maintain ‘Buy’ rating with revised target price of Rs 675/share (Rs 610 earlier) as we roll forward.

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