Max Healthcare Q4 Results Review - Inline Quarter; Growth On Track: Prabhudas Lilladher

Prabhudas Lilladher Report

Max Healthcare Institute Ltd. reported Ebitda of Rs 4.94 billion (up 15% YoY) which was in-line with our estimates, aided by higher average revenue per occupied bed at Rs 78.1k/day; up 11% YoY.

The company showed phenomenal growth (18% Ebitda compound annual growth rate) over FY22-24, despite negligible capacity additions. We expect pick-up in the growth momentum given-

1. strong expansion plans (+3000 additional beds over FY24-27E),

2. improving payor mix and

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

Operational efficiency has also been commendable, especially in competitive markets like NCR.

Our FY25E/26E Ebitda broadly remains unchanged however PAT stands reduced by ~5% factoring in recent acquisitions and we expect Ebitda/profit after tax to grow ~two times over FY24-27E. We ascribe 30 times EV/Ebitda based on FY26E. Maintain ‘Buy’ rating with target price of Rs 925/share and remains our top pick.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.