MAXHEALTH - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Here's a focused evaluation of Max Healthcare Institute Ltd (MAXHEALTH), covering its financial core, valuation realism, and long-term investment potential

🧾 Core Financials Snapshot

Profitability

ROCE: 14.9% and ROE: 12.7% are moderately healthy for a capital-intensive healthcare operator.

EPS of ₹11.1 is relatively low, considering its hefty market cap and P/E ratio.

Quarterly Performance

PAT rose from ₹291 Cr. to ₹319 Cr. → 26.8% growth, showing operational traction.

Debt Profile

Debt-to-equity of 0.32 reflects controlled leverage, appropriate for expansion-driven healthcare businesses.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 109 Overstretched compared to industry average (69.2)

P/B Ratio ~13.2 Implies premium pricing beyond asset base

PEG Ratio 4.86 High — growth rate doesn’t justify lofty multiples

Dividend Yield 0.12% Minimal — reinvestment-focused strategy

Verdict: The stock is overvalued on almost all valuation metrics, limiting near-term upside unless growth rate improves drastically.

🏥 Business Model & Strategic Positioning

Operates one of India’s leading chains of tertiary care hospitals with strong urban footholds.

Asset-light expansion and partnerships with government schemes drive scale.

Competitive edge via clinical excellence, tech-enabled diagnostics, and premium branding.

Exposure to high-margin specialties like oncology and cardiac care supports long-term value creation.

📊 Technical Overview

RSI: 56.4 — Neutral-to-slightly-overbought territory.

MACD: 9.92 — Bullish trend building.

DMA Picture

Price above both 50-DMA (₹1,221) and 200-DMA (₹1,104), confirming momentum strength.

🎯 Entry Zone & Holding Guidance

Entry Zone: ₹1,150–₹1,200 — Close to 200-DMA; allows better margin of safety.

Long-Term Guidance

Suited for investors who value urban healthcare exposure, predictable revenue streams, and scalable operating models.

Due to stretched valuation, consider staggered buying or wait for earnings clarity before full exposure.

Best held with a 3–5 year view to ride consolidation and sector tailwinds.

Would you like a peer comparison with Fortis or Apollo Hospitals next? Or shall we explore sector trends that might strengthen your conviction?

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