MAXHEALTH - Investment Analysis

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

Investment Rating: 3.8

🏥 Fundamental Analysis: Max Healthcare (MAXHEALTH)

Max Healthcare is one of India’s leading hospital chains, and its financials reflect strong operational performance, though valuation remains a concern.

Metric Value Implication

Market Cap ₹1,23,900 Cr. Large-cap; strong institutional interest

Stock P/E 109 Overvalued vs. Industry PE of 69.2 — premium pricing for growth

PEG Ratio 4.86 High — suggests overvaluation relative to earnings growth

ROE / ROCE 12.7% / 14.9% Solid profitability — above sector average

Dividend Yield 0.12% Minimal — not ideal for income investors

Debt-to-Equity 0.32 Moderate — manageable leverage

EPS ₹11.1 Reasonable earnings base

Profit Growth (QoQ) +26.8% Consistent — supports long-term growth narrative

📈 Technical & Trend Analysis

Current Price: ₹1,274

DMA 50 / DMA 200: ₹1,221 / ₹1,104 — bullish trend, trading above both averages

RSI: 56.4 — neutral zone, no overbought signals

MACD: +9.92 — bullish momentum

Volume: Slightly below average — no strong accumulation or distribution

✅ Is It a Good Long-Term Investment?

Yes, with caution. Max Healthcare has strong fundamentals in terms of ROE, ROCE, and consistent profit growth. However, the high P/E and PEG ratio indicate that the stock is priced for perfection. Long-term investors should wait for a better valuation or accumulate gradually.

🎯 Ideal Entry Price Zone

Buy Zone: ₹1,150–₹1,200

Near 50 DMA and psychological support

Accumulate on dips, especially if PEG drops below 3.5

Entry ideal during broader market corrections or sector rotation

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 2–3 years minimum — to capture healthcare sector growth

Exit Strategy

Partial Exit near ₹1,300–₹1,350 if valuation remains stretched

Hold if ROE stays above 12% and PAT growth continues above 20% YoY

Reassess if PEG rises above 6 or if debt levels increase significantly

Would you like a sector-wide comparison with peers like Apollo Hospitals or Fortis to identify better value plays in healthcare?

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