MAXHEALTH - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.9

• 📈 Revenue Growth: Quarterly PAT declined from ₹166 Cr to ₹160 Cr (-30.6% YoY)
• 💰 Profit Margins: Weak, ROE at 9.45% and ROCE at 12.5%
• ⚖️ Debt Ratio: Debt-to-equity at 0.08, low leverage
• 💵 Cash Flows: EPS of ₹6.60, modest earnings
• 📊 ROE/ROCE: Below industry leaders, showing moderate efficiency
• 📉 Valuation: P/E 151 vs Industry PE 51.8, extremely overvalued
• 📚 Book Value: ₹87.4, P/B ~12.3, premium valuation
• 📈 PEG Ratio: 4.79, indicates stretched valuation relative to growth
• 🏥 Business Model: Leading hospital chain with focus on healthcare services, diagnostics, and specialty care
• 🛡️ Competitive Advantage: Strong brand presence in healthcare, expanding network of hospitals, and diversified medical services

Positive

• ✅ Low debt-to-equity ratio (0.08)
• ✅ Strong brand presence in healthcare services
• ✅ Institutional support with DII holdings increased (+2.62%)
• ✅ Large hospital network with diversified medical offerings

Limitation

• ⚠️ Extremely high P/E ratio (151) compared to industry average (51.8)
• ⚠️ PEG ratio at 4.79 indicates poor growth relative to valuation
• ⚠️ ROE and ROCE modest compared to peers
• ⚠️ Dividend yield at 0.14%, negligible shareholder returns

Company Negative News

• 📉 Quarterly profit decline (-30.6%)
• 📉 Reduction in foreign institutional investor holdings (-2.96%)

Company Positive News

• 🌍 Expansion of hospital network and specialty care services
• 💡 Increased domestic institutional investor confidence (+2.62%)

Industry

• 💹 Industry PE at 51.8, Max Healthcare trades at a steep premium
• 📈 Healthcare sector supported by rising demand for quality medical services and diagnostics

Conclusion

Max Healthcare shows moderate fundamentals with strong brand presence and low debt, but valuations are extremely stretched with high P/E and PEG ratios. Profitability has weakened, and ROE/ROCE remain modest. Entry zone is attractive only near ₹950–1,000 (close to 52-week low and oversold RSI). Long-term holding is risky unless earnings growth accelerates and valuations normalize.

Would you like me to extend this into a peer benchmarking overlay comparing Max Healthcare with Apollo Hospitals and Fortis Healthcare, or should we run a sector rotation scan to identify stronger compounding opportunities across healthcare and diagnostics plays?