MAXHEALTH - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.8

📊 Core Financials Analysis

Profitability

PAT dipped slightly from ₹177 Cr to ₹166 Cr — a modest 7.71% decline, but still reflects stable earnings.

EPS: ₹7.33 — relatively low for the current valuation.

Return Metrics

ROCE: 12.5% — decent capital efficiency.

ROE: 9.45% — moderate shareholder return.

Debt Profile

Debt-to-equity: 0.07 — very low leverage, indicating strong financial discipline.

Cash Flow: Not explicitly stated, but consistent profitability and low debt suggest healthy operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 150 Extremely high — significantly above industry average of 57.3, implies rich valuation.

P/B Ratio ~13.8 Elevated — reflects premium expectations.

PEG Ratio 4.74 High — suggests valuation may be stretched relative to growth.

Intrinsic Value Likely below current price Due to high multiples and modest earnings growth.

🧠 Business Model & Competitive Advantage

Max Healthcare Institute Ltd. is one of India’s leading private hospital chains, with a strong presence in North India

Hospital Network: Operates over 14 hospitals with a total bed capacity exceeding 2,500.

Strategic Partnerships

Collaborations with Siemens Healthineers and Philips for advanced diagnostics

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Ties with ICICI Lombard and Star Health — 65% of patients benefit from cashless treatment

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Pharma & Research Alliances

Partnerships with Sun Pharma and Dr. Reddy’s — 30% reduction in procurement costs

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Clinical research collaborations with AIIMS and Johns Hopkins — secured ₹100 Cr in research funding

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Revenue Streams: Blend of inpatient services, diagnostics, pharmacy, and insurance-backed treatments.

Its competitive edge lies in technology integration, insurance partnerships, and clinical research capabilities, positioning it as a premium healthcare provider.

📈 Technical & Sentiment Signals

RSI: 45.5 — neutral zone, no strong momentum.

MACD: Negative — bearish crossover, short-term caution.

Volume: Slightly above weekly average — indicates steady interest.

DMA 50/200: Price hovering near both — trend indecisive.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹1,100–₹1,150 — near support and below moving averages.

Long-Term View: Max Healthcare is a high-quality healthcare play with strong infrastructure and strategic partnerships. However, current valuation is rich. Best suited for long-term investors who believe in India’s private healthcare growth and are comfortable with premium pricing. Dividend yield of 0.13% is minimal, so the focus remains on capital appreciation.

Let me know if you'd like a comparison with Apollo Hospitals or Fortis to refine your view.

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