Buy Max India; target of Rs 170: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Edelweiss' research report on Max India

Diagnostic business which was launched last year has 450 B2B tie‐ups currently and has commenced B2C operations in Punjab in Q4FY17. This vertical currently clocks revenue of INR 12.5mn per month, expected to triple by the end of this year. Company plans to expand this business to new locations where they do not have Hospital presence. Max Bupa continues to narrow losses and is on track to break even by FY19. Eventually, company plans to carve out these businesses once they attain critical mass.

Outlook

We forecast FY17‐19 revenue CAGR of 16% with EBITDA margin improving 125bps, driving 22% EBITDA CAGR and RoCE is estimated to expand to 7.9% during the period. We maintain ’BUY/SO’. We have assumed 20x FY19E EV/ EBITDA for MHC and 1x FY19E P/BV for Max Bupa & Antara to arrive at our SOTP‐based TP of INR 170.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More