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Check Before You Invest : Max Healthcare Institute Ltd

BSE: 543220 NSE: MAXHEALTH ISIN: INE027H01010
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Max Healthcare Institute Ltd belong to?
Max Healthcare Institute Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Max Healthcare Institute Ltd a good quality company?
Max Healthcare Institute Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Max Healthcare Institute Ltd undervalued or overvalued?
Max Healthcare Institute Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Max Healthcare Institute Ltd a good buy now?
Max Healthcare Institute Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd revenue growth is 30% for FY-2025 , which is below its 5 year CAGR of 46% , indicating slower growth.
Q.2 Gross Profit margin of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.2% for FY-2025 , which is in line with its 5 year median of 26.2% , indicating stable margins.
Q.3 Operating Profit Margin of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.2% for FY-2025 , which is in line with its 5 year median of 26.2% indicating stable margins.
Q.4 Net Profit Margin of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Net Profit Margin is 15.31% for FY-2025 , is below with its 5 year median of 15.37%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 26.2 26.2
Operating Profit Margin 26.2 26.2
Net Profit Margin 15.31 15.37
Q.5 Return on Asset of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Return on Asset is 7.91%, which is in line with its 5 year historical median of 7.91%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Return on equity is 12.22% for FY-2025 , which is in line with its historical median of 12.22%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Return on capital employed is 14.67% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Cash conversion cycle is -18 days, above its historical median of -18 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.52 0.47
ROE 12.22 12.22
ROCE 14.67 14.67
Cash Conversion Cycle -18 days -18 days
Q.9 Debt to Equity ratio of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Debt-to-Equity ratio is 0.27 , which is above with the industry average of 0.14 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Max Healthcare Institute Ltd?
Max Healthcare Institute Ltd Debt to cash flow from operations is 1.71 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Max Healthcare Institute Ltd?
Promoters hold 23.71% of the Max Healthcare Institute Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Max Healthcare Institute Ltd vs industry peers?
Max Healthcare Institute Ltd revenue CAGR is 46.01% , compared to the industry median CAGR of 15.55% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 7,028.5 4,524.8
Gross Profit 1,841.3 963.8
Operating Profit 1,840 980
Net Profit 1,076 607
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.52 0.47
ROE 12.22 12.22
ROCE 14.67 14.67
Cash Conversion Cycle (days) -18.33 -18

Valuation & price assessment

Q.1 Stock return of Max Healthcare Institute Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 35.03% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 35% 30.5% -10.9%
Q.3 Valuation ratios of Max Healthcare Institute Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 68.93 72.25 79.71
Price to Book 9.44 9.60 3.54
Price to Sales 12.02 13.05 4.37
EV to EBITDA 43.31 45.52 18.04

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