Prabhudas Lilladher has given Buy recommendation for Max Healthcare Institute with a target price of Rs. 427 in its research report issued on Aug 13, 2022

Prabhudas Lilladher’s research report on Max Healthcare Institute

Max Healthcare (MAXHEALT) reported EBIDTA of Rs3.7bn (up 23% QoQ) vs our estimate of Rs3.6bn. Overall occupancy stood at 74% vs 68% in Q4, while ARPOB grew healthy at Rs.66K, 4% QoQ due to annual price revisions and improvement in payor & surgical mix. Net debt decreased by Rs 2.2bn QoQ to Rs 2.1bn. MAXHEALT operational efficiency has been commendable, especially in competitive markets like NCR. Company showed phenomenal growth in past two years and we expect this momentum to continue with 1) strong expansion plans, 2) improving payor mix and 3) scale up in labs. Our FY23E and FY24E EBIDTA stands increased by 5% and 2% respectively.


We expect 16% EBITDA CAGR over FY22-24E. FY22 had one-time contribution from vaccine and COVID revs. We maintain our ‘Buy’ rating at TP of Rs427/share.

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