Max Healthcare Institute Ltd opened its trading session at Rs 453.20 and gained approximately 2 percent to trade at Rs 460. Within a timeframe of 1 month, the stock has provided its stakeholders with a gain of 6.8 percent ranging from Rs 437.40 to the current stock levels. Moving further ahead with a span of 6 months, it has gained around 8.9 percent.
The company is one of the parties to initiate discussions with TPG to buy ‘Care Hospitals’. This came into the picture soon after Blackstone pulled out of the deal due to a valuation mismatch.
Max Healthcare Institute Ltd, primarily deriving revenue from India, is a healthcare service provider. The company’s facilities include third-party healthcare providers with whom the company has entered long-term service contracts for the provision of clinical, radiology, and pathology services.
Its hospitals provide a full range of services through its Outpatient, Day Care, Emergency Room, and In-Patient departments to accommodate medical specialties as orthopaedics, internal medicine, general surgery, cardiac sciences, oncology as well as diagnostics.
Having a walkthrough of the financials of the company, we can observe that the revenues have marginally improved from Rs 1,137.12 crores in Q2 v/s Rs 1,141.24 crores in Q3. On the contrary, the net profits have moved down from Rs 457.35 crores in Q2 v/s Rs 222.41 crores in Q3.
Apart from the parameters discussed above, the profitability ratios have shown a significant improvement. ROE saw a transition from losses of 2.8 percent in FY20-21 to 10.19 percent in FY 21-22.
Promoters of the company have slightly reduced their stake from 23.8 percent in Q2 v/s 23.78 percent in Q3. The shares pledged by the company have been nil for the past 2 quarters boosting the confidence of its stakeholders. Moreover, FIIs have shown faith and increased their holdings from 49.26 percent in Q2 v/s 50.14 percent in Q3.
Written by Amit Madnani
