The shares of Max Healthcare have been going through a sell-off phase for almost 6 months. After climbing to a 52-week high in December 2021, Max Healthcare share price remains a bear favorite ‘Sell on Rise’ stock. In YTD time, this healthcare stock has fallen close to 15 per cent. However, in the past one week, this healthcare stock has shown some upside swing which has caught the attention of Dalal Street observers.
According to Edelweiss Wealth, Max Healthcare share price can go up 470 each level in the long run. Max Healthcare share price is up today 363 per share means that the brokerage expects a rise of around 30 per cent in the stock.
On the fundamentals that support Max Healthcare shares, the Edelweiss Wealth Research report says, “The company said in a meeting that it will continue to focus on growth through planned bed expansion, improvement in AROPB and occupancy. Among the key takeaways, Management is confident of (a) strong growth in the coming quarters, (b) maintaining a healthy margin, (c) growth in overseas patients and (d) improving payer mix. MHI has successfully integrated acquisitions in the past, with its One of the key growth strategies is expansion through the inorganic route.We believe MHI deserves better valuation as it complements all of our key investment ideas – including a better case mix versus peers, brand strength , quality of care, cost efficiencies and presence in premium markets (Mumbai and Delhi NCR).”
Anticipating an improvement in EBIDTA, the Edelweiss report said, “The company doubled its operating EBITDA in FY22, with EBITDA per bed (from COVID-19 vaccination and related antibody tests and Max Lab operations). Excluding revenue) grew to INR53.9 Lakh (+78 % YoY) in FY22. EBITDA per bed expected to improve further with improvement in clinical mix, increase in international patients and increase in occupancy Is.”
On its suggestions to position investors regarding Max Healthcare shares, Edelweiss Wealth Report said, “We maintain our positive outlook on the company, with superior ROCE and sector-leading ARPOB as its asset-light strong expansion plans. Keeping this in mind. We maintain our buy rating with a target price of INR470 per share (DCF-based).”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.