Jefferies has reiterated a Buy rating on Max Healthcare Institute, assigning a target price of ₹1,400, citing strong expansion plans and a proven execution record.
The company is set to expand its total bed capacity by 75% to 9,000 beds over the next 3–4 years, up from the current 5,100 beds. The bulk of these additions will be through brownfield expansion, which offers quicker breakeven and higher growth visibility.
Jefferies highlighted that Max’s strategy of balancing brownfield projects with selective acquisitions gives it an edge over peers. Management remains confident in its execution capabilities, underpinned by its track record in Delhi-NCR and newer markets like Mumbai.
Max Healthcare is one of India’s leading hospital chains, with a strong focus on tertiary care services, oncology, neurology, and organ transplant. It operates under a hub-and-spoke model, combining high-end flagship hospitals with secondary care centres.
The brokerage believes Max is well-positioned to benefit from the rising demand for quality healthcare and hospital beds, especially in urban centres, as India’s healthcare infrastructure rapidly evolves.
Disclaimer: The views and target prices mentioned are as stated by Jefferies and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
