IIFL Securities's Stock Idea: Buy Max Healthcare Ins with Target Rs 1155

IIFL Securities recommends buying Max Healthcare Insurance shares at the current market price of Rs 1124.3, with a target price of Rs 1155. The company is expected to benefit from the growing demand for healthcare services in India, driven by rising income levels and an aging population. Additionally, Max Healthcare's focus on technology and innovation is expected to further drive its growth prospects.

About Max Healthcare Ins:

Max Healthcare Institute Ltd. (Max Healthcare) is a leading provider of healthcare services in India. It operates a network of 17 healthcare facilities, including hospitals, clinics, and day-care centers, across North India. The company offers a comprehensive range of healthcare services, including primary care, secondary care, and tertiary care. Max Healthcare is committed to providing high-quality, affordable healthcare to its patients. It has been recognized for its clinical excellence and patient care by various national and international organizations. The company is listed on the National Stock Exchange (NSE) of India.

52 Week Price Trend:

Max Healthcare Institute's current market price (CMP) of Rs 1124.3 falls within its 52-week price range of Rs 630.75 to Rs 1118. Over the past 52 weeks, the stock has experienced significant volatility, with a high of Rs 1118 and a low of Rs 630.75. Investors should carefully consider the company's financial performance, industry trends, and overall risk profile before making any investment decisions. It is also important to monitor the stock's price movement and market sentiment to make informed trading decisions.

Stratzy's MOST Analysis:

MAXHEALTH's BB rating within Stratzy's MOST framework indicates a medium fundamental risk profile. This rating considers the company's management, outlook, safety, and trend aspects, with each pillar scored individually to derive the overall rating. A BB rating suggests that MAXHEALTH faces moderate concerns in these areas, potentially impacting its financial health, stability, and long-term performance. Investors may need to exercise caution and conduct further due diligence before making investment decisions.

Company's Fundamentals:

Max Healthcare Ins(NSE:MAXHEALTH) trades at a Stock PE multiple of 100.63, indicating that investors are willing to pay 100.63 times the company's annual earnings. This high PE ratio suggests that investors anticipate strong future growth from the company. Additionally, Max Healthcare Ins has a PB Ratio of 12.11, indicating that the company's market value is 12.11 times its book value. This ratio suggests that the company's assets are undervalued compared to its market price. Furthermore, Max Healthcare Ins has a Dividend Yield of 0.14%, which is a low yield compared to other companies in the healthcare sector. This low yield may be due to the company's focus on reinvesting its earnings for growth.

Fundamental and Technical information provided in this blog were last updated on 10 Dec, 2024

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