Citi has reaffirmed its buy rating on Max Healthcare with a target price of ₹1,460 after management highlighted a series of positive developments that strengthen the company’s medium-term outlook. The brokerage said Max Health expects a robust growth trajectory, driven by rising occupancies, improved case mix and steady profitability improvement at its Dwarka and Noida hospitals.
Citi noted that the insurance cashless issue—which had temporarily disrupted patient flow earlier—has now been fully resolved, with tariff corrections also implemented to ensure stability going forward. The brokerage added that the recent revision in CGHS pricing provides a structural uplift to ARPOB and margins, with the full financial impact expected to materialise from FY27 onward.
Max Healthcare is also set to commission three major brownfield projects in the third quarter, and management has indicated that these additions will not create any EBITDA drag because of their phased operational ramp-up. Citi said these factors collectively reinforce the company’s strong earnings visibility and make Max Health one of the more compelling plays in the hospital sector.
Disclaimer: The views above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.