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Multibagger stock: On account of decent volumes on the back of continued momentum in core business, Max Healthcare Q3 results came broadly in line with market expectations. According to stock market experts, due to encouraging hospital business and stabilizing non-Covid business, Max Healthcare Institute Ltd is expected to give strong quarterly numbers in upcoming quarter. So, analysts are highly bullish on the multibagger stock and expecting rise in the healthcare stock to the tune of near 15 per cent in one month.
Highlighting the fundamentals that may fuel Max Healthcare share price rally; HDFC Securities research report says, "Max’s Q3 proforma EBITDA came broadly in line at around ₹3.6bn, led by all-time high ARPOBs and decent volumes on the back of continued momentum in core business, despite a seasonally weak quarter. With a multitude of short and long-term growth drivers (international business, improvement in pay or mix, and expansion plans) in place, we expect Max’s EBITDA to grow at around 15 per cent CAGR over FY22-FY28e."
The brokerage report went on to add that hospital business of Max Healthcare Institute is showing encouraging trends. The company is operating at pre-pandemic levels with non-Covid beds accounting for near 99 per cent of total occupied beds (against neat 60 per cent in Q1).
Highlighting upon Max Healthcare shares' chart pattern; Anuj Gupta, Vice President at IIFL Securities said, "From last couple of days it is trading between ₹340 to ₹390 levels. Stock is trading in tight range with positive bias. One can buy the stock at around ₹360 apiece levels for one month target of ₹425 per share levels. However, one must maintain stop loss below ₹340 while taking this positional call."
Max Healthcare shares are one of the multibagger stocks in 2021. In last one year, it has surged from around ₹185 to ₹375, appreciating around 100 per cent in this period. Its current market capital is ₹36,340 crore and its all-time high at NSE is ₹458.05 apiece levels on NSE. Its 52-week low is ₹180.60 per share levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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