Max Healthcare (MAX) delivered in-line performance for 4QFY24. The quarterly EBITDA continues to inch up since the listing (Aug’20), reaching INR4.9b for 4QFY24. Max has demonstrated superior execution across its hospitals, Max Lab, and Max@home segments, supported by a growing number of patients and improved realizations. We reduce our earnings estimate by 4%/5% for FY25/FY26, factoring frontloading of certain operational cost related to addition of beds. We value MAX on SOTP basis (30x EV/EBITDA for hospital business on 12M forward rolling basis, 22x EV/EBITDA for Max Lab, 4x EV/Sales for Max @ Home) to arrive at a price target of INR930.
OutlookWe value MAX on SOTP basis (30x EV/EBITDA for hospital business on 12M forward rolling basis, 22x EV/EBITDA for Max Lab, 4x EV/Sales for Max @ Home) to arrive at a price target of INR930.
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