MAXHEALTH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | MAXHEALTH | Market Cap | 96,643 Cr. | Current Price | 993 ₹ | High / Low | 1,314 ₹ |
| Stock P/E | 137 | Book Value | 87.3 ₹ | Dividend Yield | 0.15 % | ROCE | 12.5 % |
| ROE | 9.45 % | Face Value | 10.0 ₹ | DMA 50 | 1,003 ₹ | DMA 200 | 1,062 ₹ |
| Chg in FII Hold | -5.16 % | Chg in DII Hold | 5.12 % | PAT Qtr | 200 Cr. | PAT Prev Qtr | 160 Cr. |
| RSI | 49.6 | MACD | 3.48 | Volume | 24,37,699 | Avg Vol 1Wk | 16,29,336 |
| Low price | 903 ₹ | High price | 1,314 ₹ | PEG Ratio | 4.35 | Debt to equity | 0.08 |
| 52w Index | 21.9 % | Qtr Profit Var | 5.45 % | EPS | 7.10 ₹ | Industry PE | 47.1 |
📊 Max Healthcare (MAXHEALTH) shows moderate fundamentals with a market cap of ₹96,643 Cr. and current price of ₹993, trading near its 50 DMA (₹1,003) but below its 200 DMA (₹1,062), reflecting technical weakness. Efficiency metrics are modest — ROE at 9.45% and ROCE at 12.5% — while valuation is stretched with a P/E of 137 compared to the industry average of 47.1. EPS at ₹7.10 is low relative to price, and PEG ratio at 4.35 highlights overvaluation. Debt-to-equity at 0.08 indicates a strong balance sheet. Quarterly PAT improved (₹160 Cr → ₹200 Cr), but profit variation (+5.45%) remains limited. Institutional flows are mixed, with FIIs reducing (-5.16%) and DIIs increasing (+5.12%).
💡 Entry Zone: ₹950–₹980 (near support levels)
📈 Long-Term Holding: Suitable only for cautious investors. Accumulation should be limited due to stretched valuations, with focus on long-term sector growth and earnings consistency.
✅ Positive
- Debt-to-equity ratio (0.08) reflects financial stability
- Quarterly PAT growth (+25%) shows earnings improvement
- DII holdings increased (+5.12%), showing strong domestic confidence
- Technical indicators (MACD positive, RSI neutral at 49.6) suggest stability
⚠️ Limitation
- High valuation (P/E 137 vs industry 47.1)
- Low EPS (₹7.10) relative to price
- PEG ratio (4.35) highlights poor growth-adjusted valuation
- FIIs reduced holdings (-5.16%), showing weaker foreign confidence
📉 Company Negative News
- Valuation stretched compared to peers
- Stock trading below 200 DMA, showing long-term weakness
📈 Company Positive News
- PAT improved sequentially (₹160 Cr → ₹200 Cr)
- DII support increased significantly (+5.12%)
- Strong balance sheet with low debt
🏭 Industry
- Healthcare sector trades at P/E 47.1, making MAXHEALTH relatively expensive
- Sector outlook remains positive with rising demand for healthcare services and infrastructure expansion
🔎 Conclusion
MAXHEALTH is fundamentally stable with low debt and improving profits, but valuations are stretched and efficiency metrics are modest. Entry near ₹950–₹980 offers a safer accumulation zone. Long-term investors should accumulate cautiously, focusing on sector growth and earnings consistency before committing to larger positions.