UBS has maintained its buy rating on Max Healthcare with a target price of ₹1,550, stating that the company’s brownfield expansion strategy will drive sustained growth and earnings over the coming quarters. The brokerage noted that Max delivered a strong Q2 performance with revenue rising 21% year-on-year and EBITDA increasing 23% year-on-year.
According to UBS, multiple capacity additions are underway, with the 160-bed Mohali hospital—including an oncology facility—recently commissioned. The Nanavati unit (268 beds) and the Smart Hospital (400 beds) are expected to be commissioned during the ongoing quarter, while construction at other upcoming facilities is progressing well. Management also clarified that recent issues around cashless insurance services have been resolved, and any impact was minimal as patients typically switch from insurance to cash billing in such scenarios.
UBS believes Max’s capacity-led growth pipeline places it in a strong position to deliver a robust earnings trajectory.
Disclaimer: The views above are those of UBS. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
