Max Healthcare Q3 Results Review - Improved Realisation Led To Growth In Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Max Healthcare Institute Ltd. delivered in-line Q3 FY24 performance. Despite Q3 being a seasonally weak quarter, the company had exhibited healthy mid-teens (15%) growth in both revenue and Ebitda. The Ebitda per bed continues to inch up, backed by payor mix/case mix optimization. The company remains on track with its bed expansion initiative. We raise our earnings estimate by 2%/4%/4% for FY24/FY25/FY26, factoring in-improved average revenue per occupied bed across institutional/international patients, andbetter operational efficiency. We also raise enterprise value/Ebitda multiple to 28 times (from 25 times earlier) on the back of-superior execution across both – operating hospitals as well as building hospitals,calibrated approach to drive profitable growth and deliver better-than-industry performance. Accordingly, we value Max Healthcare on SOTP basis (28 times EV/Ebitda for hospital business, 20 times EV/Ebitda for Max Lab, sour times EV/sales for Max@home) to arrive at a target price of Rs 930. We remain positive on Max Healthcare as it remains one of the leading hospitals delivering consistent growth in earnings, driven by a combination of increased patient base as well as optimizing patient realisation. Further, the potential for adding hospitals in the next five years is substantial, given a significant portion of it being brownfield projects. Reiterate 'Buy'..Click on the attachment to read the full report:.Piramal Pharma Q3 Results Review - Gradual Revival In Overall Performance: Motilal Oswal.DISCLAIMERThis 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.

Max Healthcare Q3 Results Review - Improved Realisation Led To Growth In Earnings: Motilal Oswal

On track to expand bed capacity

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