Max Healthcare - Impressive Track Record, Robust Outlook To Sustain Re-Rating: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Max Healthcare Institute Ltd. is currently trading at 24 times FY25E enterprise value/Ebitda, representing a premium to its historical average of 22 times. Moreover, it is also trading at a premium to its hospital peers (21 times FY25E EV/Ebitda). However, we expect Max Healthcare to continue trading at a premium on relative basis, backed by:significant land bank availability in high-demand areas of Delhi for brownfield expansion,focused approach to improve profitability per bed, andproven capability of strong turnaround of hospital assets.In fact, given strong demand tailwinds on account of-increased insurance penetration,higher international patient flow, andenhanced healthcare awareness, we expect the valuation at the sector level to further improve going forward.We reiterate 'Buy' with a target price of Rs 660, based on SOTP (25 times EV/Ebitda on 12 months forward basis for hospital business, 17 times EV/Ebitda for Max Lab business, and four times EV/sales for Max at Home business)..Click on the attachment to read the full report:.Small Finance Banks Stare At A Talent War As Attrition Jumps In FY23.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Max Healthcare - Impressive Track Record, Robust Outlook To Sustain Re-Rating: Motilal Oswal

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