Max Healthcare Institute: Target Price Set at Rs 1175 by Prabhudas Lilladher

Max Healthcare Institute Posts Soft Quarter, Outlook Remains Positive

Max Healthcare Institute (MAXHEALT) has reported a soft quarter with EBITDA growth of 8% year-over-year (YoY) to Rs 6.82 billion. The growth was impacted by the ongoing discontinuation of chemo drugs for institutional patients. Additionally, the negligible addition of beds in the previous fiscal year also affected growth in FY26.

Despite this, the company's operational efficiency has been commendable, particularly in competitive markets like the National Capital Region (NCR). We expect growth to improve from FY27, driven by the benefits of new bed addition, the CGHS price revision, and further ramp-up across the Noida and Dwarka units.

Outlook and Recommendations

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Our revised estimates for FY27E and FY28E EBITDA stand at a cut of 3-4%. We expect EBITDA to grow at a compound annual growth rate (CAGR) of 20% over FY26-28E.

| FY26 vs FY27E/FY28E EBITDA Growth | | --- | --- | | FY26 | 8% YoY | | FY27E | 10% YoY (revised estimate) | | FY28E | 20% YoY (revised estimate) |

At the current market price (CMP), the stock is trading at 26.5x Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBIDTA) on FY28E. We ascribe a multiple of 30x EV/EBITDA based on FY28E. We maintain a 'BUY' rating with a revised target price of Rs 1,175 per share.