The shares of Max Healthcare Institute Ltd shot up by 1.42% and currently trade at ₹528.80 by reaching a 52-week high of ₹531.45 on Thursday. One of the probable reasons for the stock to hit a high price is the company’s recent announcement of strong Q4 FY 22-23 earnings.
The stock is gaining traction because of positive triggers such as recently Morgan Stanley Capital International (MSCI) announced the inclusion of this stock in its India Standard Index. Inclusion in the MSCI India Standard Index is seen as positive as it is tracked by many index funds and exchange-traded funds (ETFs) as a benchmark and it is expected an inflow of $295 million into the stock.
The company board has recommended a final dividend of Re 1 per equity share (10 percent of the face value of Rs 10 each), out of the profits of the financial year 2022-23.
Based on Strong Results Motilal Oswal Financial Services recommended a target price of ₹600 or 13.6 percent upward.
Max Healthcare Institute Limited is primarily engaged in providing healthcare services through primary care clinics, multi-specialty hospitals / medical centers and super-specialty hospitals providing operation and management, medical services, clinical, radiology, pathology services, and related healthcare services
As per Consolidated financials of the previous quarter, their operating revenues have increased by 6.3 percent from ₹ 1,141 crores in Q3 to ₹ 1,214 crores in Q4 FY23. Similarly, for YoY comparison, the revenues increased from ₹ 3,931 crores during FY 21-22 to ₹ 4,562 crores in FY 22-23.
The net profit for the March quarter of FY23 (Q4FY23) jumped 85 percent year-on-year (YoY) to ₹320 crores against ₹172 crores in the corresponding quarter of the previous financial year, Similarly, for YoY comparison, the net profit significantly increased from ₹ 605 crores during FY 21-22 to ₹ 1,103 crores in FY 22-23.
The basic profitability ratios exhibiting operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE) showed an upward trend in this financial year. ROE moved from 9.63 percent during FY 21-22 to 14.89 percent in FY 22-23 and ROCE, keeping the time frame the same, moved from 10.06 percent to 12.67 percent and the debt-equity ratio stands at 0.09
According to the latest data pertaining to the shareholding pattern, the promoters hold a 23.77 percent stake, and Foreign Institutional Investors (FIIs) hold a 51.96 percent stake in the company for FY 22-23.
Written by Omkar C
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