Max Healthcare Institute (MAXHEALT) reported robust EBITDA growth of 32% YoY to Rs 6.2bn; 8% above our estimates. The company showed phenomenal growth (18% EBITDA CAGR) over FY22-24, despite negligible capacity additions. We expect pick-up in the growth momentum given 1) strong expansion plans (+3500 additional beds over FY24-27E), 2) improving payor mix and 3) Bolt on acquisitions like recently added in Lucknow, Nagpur and Noida. Operational efficiency has also been commendable, especially in competitive markets like NCR.
OutlookOur FY26E/27E EBITDA broadly remains unchanged and we expect EBITDA/PAT to grow ~2x over FY24-27E. We ascribe 35x EV/EBITDA (32x earlier) based on FY27E. Maintain ‘BUY’ rating with revised TP of Rs. 1,300/share and remains our top pick.
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