MAXHEALTH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | MAXHEALTH | Market Cap | 95,008 Cr. | Current Price | 977 ₹ | High / Low | 1,314 ₹ |
| Stock P/E | 137 | Book Value | 87.4 ₹ | Dividend Yield | 0.15 % | ROCE | 12.5 % |
| ROE | 9.45 % | Face Value | 10.0 ₹ | DMA 50 | 1,048 ₹ | DMA 200 | 1,105 ₹ |
| Chg in FII Hold | -1.25 % | Chg in DII Hold | 1.17 % | PAT Qtr | 160 Cr. | PAT Prev Qtr | 166 Cr. |
| RSI | 36.7 | MACD | -27.8 | Volume | 42,47,305 | Avg Vol 1Wk | 46,67,410 |
| Low price | 940 ₹ | High price | 1,314 ₹ | PEG Ratio | 4.34 | Debt to equity | 0.08 |
| 52w Index | 9.80 % | Qtr Profit Var | -30.6 % | EPS | 6.60 ₹ | Industry PE | 45.2 |
📊 Financials: Max Healthcare Institute has a market cap of 95,008 Cr. with quarterly PAT at 160 Cr., slightly lower than 166 Cr. in the previous quarter (-30.6% variation). ROE at 9.45% and ROCE at 12.5% reflect moderate efficiency. Debt-to-equity ratio of 0.08 indicates low leverage, providing financial stability. EPS stands at 6.60 ₹, showing modest profitability. Cash flows remain steady, supported by hospital operations and healthcare services.
💹 Valuation: Current P/E of 137 is far above the industry average of 45.2, suggesting severe overvaluation. P/B ratio is ~11.2 (977 ₹ / 87.4 ₹), which is expensive relative to book value. PEG ratio of 4.34 highlights overpriced growth. Intrinsic value appears lower than current market price, making the stock unattractive at present levels despite sector demand.
🏥 Business Model & Competitive Advantage: Max Healthcare operates in hospital and healthcare services, with competitive advantage in brand recognition, scale, and presence in key urban markets. However, profitability is sensitive to regulatory policies, healthcare costs, and competition from other private hospital chains.
📈 Entry Zone: With RSI at 36.7 (near oversold) and support around 940–960 ₹ (close to 52-week low of 940 ₹), accumulation is advisable only at lower levels. Current price at 977 ₹ remains expensive relative to fundamentals.
🕰️ Long-Term Holding Guidance: Max Healthcare is fundamentally stable but currently overvalued. Long-term holding is not recommended unless earnings growth accelerates and valuations normalize.
Positive
- Debt-to-equity ratio at 0.08 shows low leverage.
- Strong brand presence in healthcare services.
- DII holdings increased by 1.17%, showing domestic investor confidence.
Limitation
- Extremely high P/E (137) compared to industry average (45.2).
- P/B ratio (~11.2) is expensive relative to book value.
- PEG ratio of 4.34 indicates overpriced growth.
- ROE (9.45%) and ROCE (12.5%) are moderate.
Company Negative News
- Quarterly PAT declined slightly (160 Cr. vs 166 Cr.).
- FII holdings decreased by 1.25%, showing reduced foreign confidence.
Company Positive News
- Strong domestic institutional investor support (+1.17%).
- Low debt levels provide financial stability.
Industry
- Healthcare sector benefits from rising demand for private hospital services.
- Industry P/E at 45.2 highlights Max Healthcare’s overvaluation.
Conclusion
⚖️ Max Healthcare is a stable company with strong brand presence but currently overvalued with weak profitability metrics. Entry is advisable only near 940–960 ₹, and long-term holding is not recommended unless earnings growth improves and valuations normalize.