Max Healthcare has been on a tear, delivering over 700% returns to investors since October 2020. But with a recent surge in Q3 profit and growing interest from foreign institutional investors (FIIs), is this a stock you should consider buying? Let’s dive deeper.
Strong Q3 Performance
Max Healthcare reported a 26% YoY increase in Q3 FY24 net profit to ₹338 crore, exceeding expectations. Additionally, network gross revenue jumped 14% to ₹1,779 crore. This growth defies the anticipated dip in occupancy due to the festive season, highlighting the company’s strong performance.
Weekly Chart Paints a Bullish Picture
The stock’s weekly chart displays a clear uptrend, consistently forming higher highs and higher lows since its NSE debut.
From ₹107.40 in October 2020 to its current price of ₹897 as of February 13, 2024, it has delivered staggering returns, solidifying its upward trajectory.
Robust Fundamentals Underpinning Growth
Beyond its impressive current performance, Max Healthcare boasts strong fundamentals:
- Debt Reduction: The company has significantly reduced its debt burden, nearing a debt-free position.
- Profitable Track Record: It has delivered a remarkable 115% CAGR profit growth over the past five years, demonstrating consistent financial strength.
- Improved Efficiency: Debtor days have improved from 38.6 to 26.9, indicating better operational efficiency.
India’s Healthcare Leader
Max Healthcare ranks second in India for revenue, EBITDA, and market capitalization within the hospital chain sector. Its diverse range of healthcare services, encompassing primary care clinics, multi-specialty hospitals, and super-specialty facilities, positions it well for continued growth in the dynamic Indian healthcare market.
Is It a Buy?
While the past performance and current momentum are impressive, due diligence is crucial before making any investment decisions. Consider your risk tolerance, investment goals, and overall portfolio diversification before jumping in. Carefully analyze the stock’s fundamentals, future growth prospects, and potential risks before making a final decision.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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