Buy Max Healthcare Ins, target price Rs 878: IIFL Securities

IIFL Securities recommends buying Max Healthcare Ins at the current market price of Rs 846.95. The brokerage firm sees a target price of Rs 878 for the stock, implying a potential upside of 3.7%. The recommendation is based on the company's robust performance in recent quarters, strong brand recognition, and expansion plans. Max Healthcare Ins is one of the leading private healthcare providers in India, with a network of 17 hospitals and over 2,600 beds. The company reported a net profit of Rs 165 crore in Q4FY23, up 12% year-on-year.

About Max Healthcare Ins:

Max Healthcare Institute Limited (Max Healthcare) is a leading provider of healthcare services in India, with a network of over 17 hospitals and over 3,200 beds across 12 cities. The company offers a wide range of services, including cardiology, oncology, neurology, nephrology, orthopedics, and critical care. Max Healthcare is a part of the Max Group, one of India's leading business conglomerates. The company is listed on the National Stock Exchange (NSE) of India and has a market capitalization of over INR 12,000 crores.

52 Week Price Trend:

Max Healthcare Institute's (MAXHEALTH) stock currently trades at Rs. 846.95, positioned within a range defined by its 52-week high of Rs. 910 and its 52-week low of Rs. 411.9. This range suggests that the stock has experienced significant fluctuations over the past year, indicating a volatile trading environment. The current price sits closer to the low end of the range, indicating potential room for recovery or further decline based on market sentiment and company performance.

Stratzy's MOST Analysis:

Stratzy's MOST framework assigns MAXHEALTH an AA rating. This indicates that MAXHEALTH has medium fundamental risks. The MOST framework evaluates companies based on Management, Outlook, Safety, and Trend. MAXHEALTH's strong performance in these areas has earned it a high rating, suggesting that it is a relatively safe investment with a positive long-term outlook.

Company's Fundamentals:

Max Healthcare Ins (NSE: MAXHEALTH) has a Stock PE (Price to Earnings) ratio of 76.78, indicating that its current market price is 76.78 times its annual earnings per share. The PB Ratio (Price to Book) of 10.34 suggests that the market value of the company's assets is 10.34 times its book value, implying that investors are willing to pay a premium for its assets. Conversely, the Dividend Yield of 0.12% represents the annual dividend payout as a percentage of the current share price, indicating a low level of dividend income for shareholders.

Fundamental and Technical information provided in this blog were last updated on 12 Jun, 2024

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