Max Healthcare shares jumped 2% after UBS upgraded the stock to ‘Buy’ from ‘Neutral’ and raised its target price to ₹1,200. As of 9:39 AM, the shares were trading 1.63% higher at Rs 1,031.20.
The brokerage highlighted the company’s strong execution in expanding hospital capacity and faster-than-expected break-even of new facilities. UBS believes the market is undervaluing Max Healthcare’s asset-light growth strategy, which ensures efficient capital allocation and sustainable expansion without financial strain.
With multiple expansion projects underway, Max Healthcare has consistently demonstrated its ability to scale operations rapidly. Its strong operating cash flow, estimated at ₹80 billion between FY25 and FY28, is expected to support further growth without significant debt burdens. The company’s ability to maintain high occupancy rates and quickly achieve profitability at new hospitals strengthens its investment appeal.
UBS sees Max Healthcare as a key player in India’s growing healthcare sector and expects further re-rating as it continues its aggressive expansion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
