Max Healthcare Q1 Results Review - InIine Quarter; New Units Ramping Up Well: Prabhudas Lilladher

Prabhudas Lilladher Report

Max Healthcare Institute Ltd. reported Ebitda of Rs 5 billion (up 14% YoY) which was largely in-line with our estimates. The company showed phenomenal growth (18% Ebitda compound annual growth rate over FY22-24, despite negligible capacity additions. We expect pick-up in the growth momentum given

1. strong expansion plans (plus 3000 additional beds over FY24-27E),

2. improving payor mix and

3. Bolt on acquisitions like recently added in Lucknow and Nagpur.

Operational efficiency has also been commendable, especially in competitive markets like National capital region. Our FY25E/26E Ebitda remains unchanged and we expect Ebitda/profit after tax to grow ~2 times over FY24-27E.

We ascribe 32 times enterprise value/Ebitda based on FY26E. Maintain ‘Buy’ rating with target price of Rs. 975/share (Earlier at Rs 925/share) and remains our top pick.

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