Buy Max Healthcare Institute; target of Rs 1300: ICICI Securities

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Max Healthcare's brownfield expansion is on track, with 758 beds added in the last one year, and plans to add another 1,400 beds over the next 3-4 quarters.
  • The company is optimizing its payor mix by reducing exposure to scheme-based patients and increasing international patient flow, which grew 33% YoY.
  • Max is focusing on improving operating performance at its newly acquired Bhubaneswar facility, with a new leadership team and added clinical teams.
  • The company's homecare business, Max@Home, reported a 37% YoY growth in revenue.

Thesis Validation Checklist

  • Investors should watch for the ramp-up of newly added beds and the impact on occupancy and revenue.
  • The company's ability to maintain its payor mix and ARPP growth will be crucial.
  • International patient flow and homecare business growth will be key monitors.
  • The progress of the Bhubaneswar facility's renovation and expansion will be an important indicator of the company's execution capabilities.