MAXHEALTH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | MAXHEALTH | Market Cap | 99,546 Cr. | Current Price | 1,023 ₹ | High / Low | 1,314 ₹ |
| Stock P/E | 137 | Book Value | 91.9 ₹ | Dividend Yield | 0.15 % | ROCE | 10.5 % |
| ROE | 8.46 % | Face Value | 10.0 ₹ | DMA 50 | 1,020 ₹ | DMA 200 | 1,059 ₹ |
| Chg in FII Hold | -5.16 % | Chg in DII Hold | 5.12 % | PAT Qtr | 203 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 49.0 | MACD | 17.4 | Volume | 1,22,16,285 | Avg Vol 1Wk | 41,91,928 |
| Low price | 903 ₹ | High price | 1,314 ₹ | PEG Ratio | 82.8 | Debt to equity | 0.09 |
| 52w Index | 29.2 % | Qtr Profit Var | 14.6 % | EPS | 7.36 ₹ | Industry PE | 48.6 |
📊 Core Financials: Max Healthcare reported quarterly PAT of ₹203 Cr (up from ₹200 Cr), showing stable profitability. ROE at 8.46% and ROCE at 10.5% reflect modest efficiency. Debt-to-equity ratio of 0.09 indicates low leverage. EPS at ₹7.36 is weak relative to market cap, highlighting limited earnings power despite growth.
💹 Valuation Indicators: Stock P/E of 137 is far above the industry average (48.6), suggesting severe overvaluation. Book value at ₹91.9 vs CMP ₹1,023 shows a steep premium. PEG ratio of 82.8 indicates earnings growth is not keeping pace with valuation. Intrinsic value appears lower than CMP, limiting upside potential.
🏥 Business Model & Advantage: Max Healthcare operates in hospitals and healthcare services, with competitive advantage in scale, brand recognition, and presence in key urban markets. However, profitability remains modest, and valuations are stretched, reducing overall attractiveness.
📈 Entry Zone & Holding Guidance: The stock trades near DMA 50 (₹1,020) and DMA 200 (₹1,059), showing consolidation. RSI at 49.0 indicates neutral momentum. A better entry zone would be closer to ₹950–₹1,000. Long-term holding is viable given healthcare demand, but investors should be cautious of high valuations.
Positive
- ✅ Low debt-to-equity ratio (0.09), minimal leverage risk
- ✅ Stable PAT growth (₹200 Cr → ₹203 Cr)
- ✅ DII holding increased by 5.12%, showing strong domestic institutional confidence
Limitation
- ⚠️ Extremely high P/E (137) vs industry average (48.6)
- ⚠️ Weak ROE (8.46%) and ROCE (10.5%) efficiency
- ⚠️ EPS at ₹7.36, reflecting poor earnings power
Company Negative News
- 📉 FII holding decreased by 5.16%, showing reduced foreign investor confidence
Company Positive News
- 📈 Quarterly profit growth of 14.6% year-on-year indicates operational improvement
- 📈 Strong brand presence in healthcare services supports long-term demand
Industry
- 🌐 Healthcare industry PE at 48.6, reflecting moderate valuations compared to Max Healthcare’s premium
- 🌐 Long-term demand supported by rising healthcare needs and urban expansion
Conclusion
🔎 Max Healthcare is fundamentally stable with low debt and strong brand presence, but suffers from weak efficiency metrics and extremely high valuations. Entry near ₹950–₹1,000 offers better risk-reward. Long-term investors may hold cautiously, supported by healthcare demand, but valuation risks must be monitored closely.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.