Max healthcare ltd
**Max Healthcare Institute Ltd. – Comprehensive Fundamental and Technical Analysis**
**Company Overview:**
Max Healthcare Institute Ltd. is a leading private healthcare provider in India, operating a network of hospitals and medical centers across Delhi, the National Capital Region, Maharashtra, Punjab, Uttar Pradesh, and Uttarakhand. The company offers a wide range of medical services, including specialized treatments in oncology, cardiology, neurology, and orthopedics. Max Healthcare is known for its advanced medical infrastructure and commitment to quality healthcare services.
**Recent Financial Performance:**
- **Revenue Growth:** In the fiscal year ending March 31, 2024, Max Healthcare reported a revenue of ₹65.42 billion, reflecting a compound annual growth rate (CAGR) of 18.49% over the previous year.
- **Profitability:** The company achieved a net profit of ₹10.58 billion in 2023, marking a decrease of 4.16% compared to the previous year.
- **Return on Equity (ROE):** Max Healthcare delivered an ROE of 12.57% in the year ending March 31, 2024, outperforming its five-year average of 8.87%.
**Key Financial Metrics:**
- **Market Capitalization:** As of February 14, 2025, Max Healthcare's market cap stands at approximately ₹98,706 crore, positioning it as a large-cap company in the Indian healthcare sector.
- **Price-to-Earnings (P/E) Ratio:** The stock is trading at a P/E ratio of 97.88, indicating a premium valuation compared to industry peers.
- **Price-to-Book (P/B) Ratio:** The P/B ratio is 10.92, suggesting the stock is trading at a significant premium to its book value.
- **Dividend Yield:** The company offers a dividend yield of 0.15%, reflecting its policy of returning value to shareholders.
**Technical Analysis:**
- **Current Stock Price (as of February 17, 2025):** ₹1,004.85.
- **52-Week Range:** The stock has traded between ₹901.50 and ₹1,101.80, indicating a 52-week high of ₹1,101.80 and a low of ₹901.50.
- **Support Levels:** Immediate support is observed around ₹950, with a stronger support zone near ₹900.
- **Resistance Levels:** The stock faces resistance near ₹1,050, with a significant resistance level around ₹1,100.
- **Moving Averages:**
- **50-Day Moving Average:** Approximately ₹1,000, indicating a neutral short-term trend.
- **200-Day Moving Average:** Around ₹950, suggesting a bullish long-term trend as the stock is trading above this level.
- **Relative Strength Index (RSI):** Currently at 55, indicating a neutral stance with no immediate overbought or oversold conditions.
**Analyst Recommendations:**
Axis Capital initiated coverage on Max Healthcare with a "Buy" rating and a target price of ₹1,315, citing the company's dominant position in the healthcare sector and its extensive network of over 2,900 beds.
**Investment Considerations:**
- **Strengths:**
- **Market Leadership:** Max Healthcare operates a vast network of hospitals and medical centers, establishing a strong brand presence in the Indian healthcare industry.
- **Service Diversification:** The company offers a comprehensive range of medical services, catering to various specialties and patient needs.
- **Risks:**
- **Regulatory Environment:** The healthcare sector is subject to stringent regulations, which may impact operational flexibility and profitability.
- **Valuation Concerns:** The high P/E and P/B ratios suggest that the stock is trading at a premium, which may limit upside potential.
**Conclusion:**
Max Healthcare Institute Ltd. demonstrates robust financial performance and holds a leading position in the Indian healthcare sector. While the stock's premium valuation warrants cautious consideration, the company's growth prospects and market leadership make it a noteworthy entity in the healthcare industry.
**Investment Strategy:**
- **Short-Term Traders:** Consider entering near support levels around ₹950, with a target price of ₹1,050. Maintain a stop-loss below ₹900 to manage downside risk.
- **Long-Term Investors:** The stock's current valuation and growth prospects make it a potential candidate for long-term investment, with a target price of ₹1,315. Regularly assess the company's performance and market conditions to make informed decisions.
*Note: This analysis is for informational purposes only and should not be construed as financial advice. Investors are encouraged to conduct their own research or consult with a financial advisor before making investment decisions.*
**Company Overview:**
Max Healthcare Institute Ltd. is a leading private healthcare provider in India, operating a network of hospitals and medical centers across Delhi, the National Capital Region, Maharashtra, Punjab, Uttar Pradesh, and Uttarakhand. The company offers a wide range of medical services, including specialized treatments in oncology, cardiology, neurology, and orthopedics. Max Healthcare is known for its advanced medical infrastructure and commitment to quality healthcare services.
**Recent Financial Performance:**
- **Revenue Growth:** In the fiscal year ending March 31, 2024, Max Healthcare reported a revenue of ₹65.42 billion, reflecting a compound annual growth rate (CAGR) of 18.49% over the previous year.
- **Profitability:** The company achieved a net profit of ₹10.58 billion in 2023, marking a decrease of 4.16% compared to the previous year.
- **Return on Equity (ROE):** Max Healthcare delivered an ROE of 12.57% in the year ending March 31, 2024, outperforming its five-year average of 8.87%.
**Key Financial Metrics:**
- **Market Capitalization:** As of February 14, 2025, Max Healthcare's market cap stands at approximately ₹98,706 crore, positioning it as a large-cap company in the Indian healthcare sector.
- **Price-to-Earnings (P/E) Ratio:** The stock is trading at a P/E ratio of 97.88, indicating a premium valuation compared to industry peers.
- **Price-to-Book (P/B) Ratio:** The P/B ratio is 10.92, suggesting the stock is trading at a significant premium to its book value.
- **Dividend Yield:** The company offers a dividend yield of 0.15%, reflecting its policy of returning value to shareholders.
**Technical Analysis:**
- **Current Stock Price (as of February 17, 2025):** ₹1,004.85.
- **52-Week Range:** The stock has traded between ₹901.50 and ₹1,101.80, indicating a 52-week high of ₹1,101.80 and a low of ₹901.50.
- **Support Levels:** Immediate support is observed around ₹950, with a stronger support zone near ₹900.
- **Resistance Levels:** The stock faces resistance near ₹1,050, with a significant resistance level around ₹1,100.
- **Moving Averages:**
- **50-Day Moving Average:** Approximately ₹1,000, indicating a neutral short-term trend.
- **200-Day Moving Average:** Around ₹950, suggesting a bullish long-term trend as the stock is trading above this level.
- **Relative Strength Index (RSI):** Currently at 55, indicating a neutral stance with no immediate overbought or oversold conditions.
**Analyst Recommendations:**
Axis Capital initiated coverage on Max Healthcare with a "Buy" rating and a target price of ₹1,315, citing the company's dominant position in the healthcare sector and its extensive network of over 2,900 beds.
**Investment Considerations:**
- **Strengths:**
- **Market Leadership:** Max Healthcare operates a vast network of hospitals and medical centers, establishing a strong brand presence in the Indian healthcare industry.
- **Service Diversification:** The company offers a comprehensive range of medical services, catering to various specialties and patient needs.
- **Risks:**
- **Regulatory Environment:** The healthcare sector is subject to stringent regulations, which may impact operational flexibility and profitability.
- **Valuation Concerns:** The high P/E and P/B ratios suggest that the stock is trading at a premium, which may limit upside potential.
**Conclusion:**
Max Healthcare Institute Ltd. demonstrates robust financial performance and holds a leading position in the Indian healthcare sector. While the stock's premium valuation warrants cautious consideration, the company's growth prospects and market leadership make it a noteworthy entity in the healthcare industry.
**Investment Strategy:**
- **Short-Term Traders:** Consider entering near support levels around ₹950, with a target price of ₹1,050. Maintain a stop-loss below ₹900 to manage downside risk.
- **Long-Term Investors:** The stock's current valuation and growth prospects make it a potential candidate for long-term investment, with a target price of ₹1,315. Regularly assess the company's performance and market conditions to make informed decisions.
*Note: This analysis is for informational purposes only and should not be construed as financial advice. Investors are encouraged to conduct their own research or consult with a financial advisor before making investment decisions.*
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Hello Traders, Follow Us for Daily Updates -- Email - Gloabltradehub@gmail.com ---Contact - +91 93555 50303 ---
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.