MAXHEALTH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | MAXHEALTH | Market Cap | 95,276 Cr. | Current Price | 979 ₹ | High / Low | 1,314 ₹ |
| Stock P/E | 135 | Book Value | 87.3 ₹ | Dividend Yield | 0.15 % | ROCE | 12.5 % |
| ROE | 9.45 % | Face Value | 10.0 ₹ | DMA 50 | 1,043 ₹ | DMA 200 | 1,088 ₹ |
| Chg in FII Hold | -1.25 % | Chg in DII Hold | 1.17 % | PAT Qtr | 200 Cr. | PAT Prev Qtr | 160 Cr. |
| RSI | 32.8 | MACD | -16.9 | Volume | 29,73,107 | Avg Vol 1Wk | 49,74,219 |
| Low price | 934 ₹ | High price | 1,314 ₹ | PEG Ratio | 4.29 | Debt to equity | 0.08 |
| 52w Index | 11.9 % | Qtr Profit Var | 5.45 % | EPS | 7.10 ₹ | Industry PE | 43.5 |
📊 Chart & Trend: Max Healthcare trades at ₹979, below both its 50 DMA (₹1,043) and 200 DMA (₹1,088). This indicates short-term and medium-term weakness, with the stock struggling to regain upward momentum.
📉 Momentum Indicators: RSI at 32.8 shows the stock is oversold, suggesting potential support and a possible rebound. MACD at -16.9 confirms bearish momentum. Bollinger Bands suggest price is near the lower band, with support around ₹960–₹980.
📈 Volume Trends: Current volume (29.7 lakh) is lower than the 1-week average (49.7 lakh), reflecting reduced participation and lack of strong buying conviction.
🔑 Entry Zone: ₹960–₹980 (near support and oversold RSI levels).
🚪 Exit Zone: ₹1,040–₹1,060 (near resistance and 50 DMA).
📌 Trend Status: The stock is reversing downward with strong bearish signals, though oversold RSI suggests a possible short-term bounce.
Positive
- Quarterly PAT improved (₹160 Cr → ₹200 Cr).
- EPS at ₹7.10 shows earnings stability.
- ROCE (12.5%) and ROE (9.45%) show moderate efficiency.
- DII holdings increased (+1.17%), showing strong domestic institutional support.
- Debt-to-equity ratio at 0.08 reflects low leverage.
Limitation
- Stock P/E at 135 is far higher than industry PE of 43.5.
- PEG ratio at 4.29 suggests expensive valuation relative to growth.
- Dividend yield at 0.15% is negligible.
- 52-week index at 11.9% shows weak performance compared to peers.
Company Negative News
- FII holdings decreased (-1.25%), showing reduced foreign investor confidence.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
Company Positive News
- Sequential PAT growth highlights profitability momentum.
- DII stake increased, supporting long-term confidence.
Industry
- Healthcare sector PE at 43.5, much lower than Max Healthcare’s valuation of 135.
- Sector rotation favors defensive healthcare stocks, but valuations remain stretched for premium players.
Conclusion
⚖️ Max Healthcare is reversing downward with bearish short-term signals, trading below key averages. Entry near ₹960–₹980 offers margin of safety, while exits around ₹1,040–₹1,060 provide profit-taking opportunities. Despite strong profitability growth and domestic institutional support, high valuations and weak technicals limit upside, though long-term fundamentals in healthcare provide resilience.
Would you like me to extend this into a peer benchmarking overlay with Apollo Hospitals, Fortis Healthcare, and Narayana Health to highlight Max Healthcare’s relative valuation and technical strength within the healthcare sector?