Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Max Healthcare Institute Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 10, 2024, 11:57 pm

Market Cap 92,581 Cr.
Current Price 952
High / Low1,118/539
Stock P/E87.8
Book Value 86.5
Dividend Yield0.16 %
ROCE16.0 %
ROE13.4 %
Face Value 10.0
PEG Ratio1.57

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Max Healthcare Institute Ltd

Competitors of Max Healthcare Institute Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Global Longlife Hospital and Research Ltd 38.1 Cr. 36.361.7/27.0 24.70.00 %2.51 %4.72 % 10.0
Gian Lifecare Ltd 21.1 Cr. 20.429.0/18.55.09 19.00.00 %29.2 %24.6 % 10.0
Fortis Malar Hospitals Ltd 107 Cr. 57.2108/44.0 58.474.3 %3.29 %9.12 % 10.0
Family Care Hospitals Ltd 41.4 Cr. 7.6610.4/6.233.70 10.80.00 %15.4 %24.1 % 10.0
Dr Lalchandani Labs Ltd 8.88 Cr. 20.535.0/0.00 22.00.00 %2.68 %8.23 % 10.0
Industry Average24,153.43 Cr786.5760.9885.183.45%11.38%11.98%9.04

All Competitor Stocks of Max Healthcare Institute Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7968021,0001,0189769371,0671,1371,1421,2151,2851,3631,335
Expenses635634756779728729802818828874948976949
Operating Profit160168244239247209265319314340337387386
OPM %20%21%24%23%25%22%25%28%28%28%26%28%29%
Other Income40292623462631264540414546
Interest4645272725222222202019911
Depreciation48485454555857585760565861
Profit before tax105104190182213154216265281301303366360
Tax %14%33%23%20%11%20%20%-72%21%17%21%24%20%
Net Profit9070147145190124173457222251240277289
EPS in Rs1.000.721.521.501.961.281.784.722.292.582.472.852.98

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6081,7291,6911,0592,5083,9374,5635,004
Expenses1,4671,6161,5359652,1012,9863,3223,625
Operating Profit141113156944079511,2411,379
OPM %9%7%9%9%16%24%27%28%
Other Income59655648-122110139172
Interest10099101831791018468
Depreciation969410346174221232231
Profit before tax5-15813-697391,0641,252
Tax %-236%-65%102%-1%-67%18%-4%
Net Profit16-25-059-1386051,104990
EPS in Rs0.29-0.47-0.061.10-1.426.2411.3710.19
Dividend Payout %0%0%0%0%0%0%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192020-20212021-20222022-2023
YoY Net Profit Growth (%)-256.25%100.00%-333.90%538.41%82.48%
Change in YoY Net Profit Growth (%)0.00%356.25%-433.90%872.30%-455.93%

Max Healthcare Institute Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:26%
3 Years:29%
TTM:19%
Compounded Profit Growth
10 Years:%
5 Years:780%
3 Years:96%
TTM:-10%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:41%
1 Year:62%
Return on Equity
10 Years:%
5 Years:12%
3 Years:13%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:12 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital537537537537966970971972
Reserves6556274264504,6735,3136,4397,436
Borrowings8749811,0031,5161,1019136891,299
Other Liabilities1,0801,1571,3891,3001,8031,9932,0032,293
Total Liabilities3,1463,3023,3553,8048,5439,18910,10212,000
Fixed Assets2,2442,2272,1922,3806,5367,0187,0398,784
CWIP463887627151252553
Investments00111112
Other Assets8561,0361,0751,4181,9802,0202,8102,661
Total Assets3,1463,3023,3553,8048,5439,18910,10212,000

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 156166892501187411,2841,122
Cash from Investing Activity -104-124-17-127206-764-102-1,253
Cash from Financing Activity -48-48-74144191-294-289-264
Net Cash Flow4-6-2267516-317893-394

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-733.00-868.00155.0093.00406.0038.00-688.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5359788053362731
Inventory Days2024264034243026
Days Payable184227292273274174215221
Cash Conversion Cycle-111-144-188-153-187-114-158-164
Working Capital Days7-2-136-91-32-13-39-36
ROCE %4%6%11%7%12%15%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.91%60.68%50.64%50.64%23.80%23.78%23.77%23.76%23.76%23.75%23.75%23.74%
FIIs14.23%16.67%14.59%23.34%49.27%50.15%51.96%59.89%60.39%60.69%57.33%56.99%
DIIs8.70%15.67%17.57%19.42%21.16%20.47%19.36%11.90%11.40%11.55%14.96%15.36%
Public16.16%6.97%17.20%6.61%5.76%5.61%4.92%4.45%4.45%3.99%3.97%3.91%
No. of Shareholders91,9371,11,8771,20,0791,05,0001,01,6591,11,7011,04,6561,11,3741,18,6351,11,3381,27,0091,36,254

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan24,302,3052.961545.143,605,8992024-10-09573.96%
Canara Robeco Emerging Equities7,844,2302.65498.743,605,8992024-10-09117.54%
PGIM India Midcap Opportunities Fund4,562,1202.96290.063,605,8992024-10-0926.52%
SBI Magnum Midcap Fund4,500,0001.98286.113,605,8992024-10-0924.8%
Nippon India Growth Fund4,100,0001.22260.683,605,8992024-10-0913.7%
SBI Large & Midcap Fund3,679,0761.36233.923,605,8992024-10-092.03%
SBI Flexi Cap Fund3,605,8991.23229.263,605,8992024-10-090%
PGIM India Flexi Cap Fund2,871,0653.1182.543,605,8992024-10-09-20.38%
Canara Robeco Flexi Cap Fund2,780,5701.64176.793,605,8992024-10-09-22.89%
HSBC Midcap Fund2,549,6101.83162.13,605,8992024-10-09-29.29%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.8911.386.25-1.591.01
Diluted EPS (Rs.)10.8411.366.24-1.591.01
Cash EPS (Rs.)13.4013.768.520.611.09
Book Value[Excl.RevalReserv]/Share (Rs.)86.5176.3164.7958.3747.52
Book Value[Incl.RevalReserv]/Share (Rs.)86.5176.3164.7958.3747.52
Revenue From Operations / Share (Rs.)55.6246.9940.5525.9319.71
PBDIT / Share (Rs.)17.1814.2111.035.372.64
PBIT / Share (Rs.)14.6611.828.753.571.79
PBT / Share (Rs.)14.0510.967.62-0.710.23
Net Profit / Share (Rs.)10.8811.376.24-1.190.24
NP After MI And SOA / Share (Rs.)10.8811.376.24-1.421.10
PBDIT Margin (%)30.8930.2427.2120.7013.37
PBIT Margin (%)26.3625.1521.5813.759.06
PBT Margin (%)25.2523.3118.79-2.741.20
Net Profit Margin (%)19.5624.1815.38-4.571.21
NP After MI And SOA Margin (%)19.5624.1815.38-5.495.57
Return on Networth / Equity (%)12.5714.899.63-2.432.31
Return on Capital Employeed (%)13.2512.6710.064.433.23
Return On Assets (%)8.8110.926.58-1.601.48
Long Term Debt / Equity (X)0.140.060.100.140.04
Total Debt / Equity (X)0.150.070.110.150.32
Asset Turnover Ratio (%)0.480.210.210.180.00
Current Ratio (X)1.371.861.321.452.89
Quick Ratio (X)1.301.791.241.382.86
Interest Coverage Ratio (X)27.8916.4510.612.891.70
Interest Coverage Ratio (Post Tax) (X)18.6614.167.091.661.16
Enterprise Value (Cr.)79935.1841914.3233863.1120147.550.00
EV / Net Operating Revenue (X)14.799.198.618.040.00
EV / EBITDA (X)47.8630.3831.6538.850.00
MarketCap / Net Operating Revenue (X)14.759.388.567.950.00
Price / BV (X)9.485.785.353.530.00
Price / Net Operating Revenue (X)14.759.388.567.950.00
EarningsYield0.010.020.01-0.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Max Healthcare Institute Ltd as of October 11, 2024 is: ₹1,019.32

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Max Healthcare Institute Ltd is Undervalued by 7.07% compared to the current share price ₹952.00

Intrinsic Value of Max Healthcare Institute Ltd as of October 11, 2024 is: ₹1,590.99

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Max Healthcare Institute Ltd is Undervalued by 67.12% compared to the current share price ₹952.00

Last 5 Year EPS CAGR: 56.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -42.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -152.38, which is a positive sign.
  3. The company has higher reserves (3,252.38 cr) compared to borrowings (1,047.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (2.25 cr) and profit (85.38 cr) over the years.
  1. The stock has a low average ROCE of 8.88%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Max Healthcare Institute Ltd:
    1. Net Profit Margin: 19.56%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.25% (Industry Average ROCE: 11.38%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.57% (Industry Average ROE: 11.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 18.66
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.3
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 87.8 (Industry average Stock P/E: 45.07)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Max Healthcare Institute Ltd. is a Public Limited Listed company incorporated on 18/06/2001 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L72200MH2001PLC322854 and registration number is 111313. Currently Company is involved in the business activities of Hospital activities. Company’s Total Operating Revenue is Rs. 1729.08 Cr. and Equity Capital is Rs. 969.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hospitals & Medical Services401, 4th Floor, Man Excellenza, Mumbai Maharashtra 400056investors@maxhealthcare.com
http://www.maxhealthcare.in
Management
NamePosition Held
Mr. Abhay SoiChairman & Managing Director
Mr. Pranav AminIndependent Director
Mr. Michael Thomas NeebIndependent Director
Mr. K Narasimha MurthyIndependent Director
Mr. Anil Kumar BhatnagarNon Executive Director
Mr. Narayan K SeshadriNon Executive Director
Ms. Amrita GangotraIndependent Woman Director
Mr. Mahendra Gumanmalji LodhaIndependent Director
Dr. Pranav C MehtaIndependent Director

FAQ

What is the latest fair value of Max Healthcare Institute Ltd?

The latest fair value of Max Healthcare Institute Ltd is ₹1019.32.

What is the Market Cap of Max Healthcare Institute Ltd?

The Market Cap of Max Healthcare Institute Ltd is 92,581 Cr..

What is the current Stock Price of Max Healthcare Institute Ltd as on 11 October 2024?

The current stock price of Max Healthcare Institute Ltd as on 11 October 2024 is ₹952.

What is the High / Low of Max Healthcare Institute Ltd stocks in FY 2024?

In FY 2024, the High / Low of Max Healthcare Institute Ltd stocks is 1,118/539.

What is the Stock P/E of Max Healthcare Institute Ltd?

The Stock P/E of Max Healthcare Institute Ltd is 87.8.

What is the Book Value of Max Healthcare Institute Ltd?

The Book Value of Max Healthcare Institute Ltd is 86.5.

What is the Dividend Yield of Max Healthcare Institute Ltd?

The Dividend Yield of Max Healthcare Institute Ltd is 0.16 %.

What is the ROCE of Max Healthcare Institute Ltd?

The ROCE of Max Healthcare Institute Ltd is 16.0 %.

What is the ROE of Max Healthcare Institute Ltd?

The ROE of Max Healthcare Institute Ltd is 13.4 %.

What is the Face Value of Max Healthcare Institute Ltd?

The Face Value of Max Healthcare Institute Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Max Healthcare Institute Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE