Prabhudas Lilladher's research report on Max Healthcare Institute
Max Healthcare Institute (MAXHEALT) reported EBITDA of Rs 5bn (up 14% YoY) which was largely in-line with 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 (+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 NCR.
Outlook
Our FY25E/26E EBITDA remains unchanged and we expect EBITDA/PAT to grow ~2x over FY24-27E. We ascribe 32x EV/EBITDA based on FY26E. Maintain ‘BUY’ rating with TP of Rs. 975/share (Earlier at Rs925/share) and remains our top pick.
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