Max Healthcare Institute Ltd

Max Healthcare Institute Ltd maintains a strong liquidity position, with a current ratio of 1.37, indicating the company can cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score suggests a medium liquidity risk, which is consistent with its cash and equivalents of 10,992.7 million INR and long-term debt of 12,989.5 million INR. However, the company's net cash position is negative after subtracting total debt, which could pose a liquidity challenge if not managed effectively.

In terms of profitability, Max Healthcare Institute Ltd reports a return on equity (ROE) of 2.99% and a return on assets (ROA) of 2.1%, which are below the industry median for healthcare facilities and services. The company's operating income of 3,112.1 million INR and net income of 2,515.4 million INR reflect a solid but not exceptional performance in a competitive sector. The gross profit margin of 79.2% is in line with industry norms, but the company's operating margin of 21.9% suggests room for improvement in cost management.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification could expose the company to regional economic or regulatory risks. The company's capital expenditures of -7,859.5 million INR indicate a significant investment in infrastructure or expansion, which may support future growth but could also strain short-term cash flow.

Looking ahead, the company's revenue is expected to grow, supported by its strong operating cash flow of 11,563.9 million INR. Analysts have provided a mean price target of 1,213.50 INR and a median price target of 1,254.00 INR, with a mean recommendation of 2.18, indicating a generally positive outlook. The company's growth trajectory is further supported by its strong buy and buy recommendations from analysts, with 5 and 12 such ratings, respectively.

The company's risk assessment indicates a low dilution risk, with a dilution score of low. The company's capital structure, with a debt-to-equity ratio of 0.15, suggests a conservative approach to leverage, which reduces financial risk. However, the company's net cash position being negative after subtracting total debt could be a concern if not addressed. The company has not disclosed any recent dilutive events, and its shares outstanding remain unchanged between basic and diluted shares.

Recent events, including analyst estimates and price targets, suggest a positive sentiment toward the company. The company's strong operating cash flow and positive analyst recommendations indicate a favorable market perception. However, the company should continue to monitor its liquidity and manage its debt effectively to maintain its strong financial position.

Revenue grew 30% year-over-year to INR 70.3 billion in FY2025, demonstrating strong top-line expansion momentum.

Analysts project 15.6% upside to a mean price target of INR 1,213.5, reflecting strong institutional confidence in future performance.

Cash conversion ratio of 4.6 is best-in-class compared to the 1.36 cohort median, highlighting exceptional cash generation capabilities.

Operating income increased 14.6% year-over-year to INR 14.4 billion, showing consistent improvement in core profitability metrics.

Long-term debt surged to INR 30.1 billion in FY2025, more than doubling from INR 13.0 billion in the prior year.

Net income growth stalled at just 1.7% year-over-year, failing to keep pace with the 30% revenue expansion.

Return on equity of 3.0% remains below the 4.6% cohort median, indicating suboptimal capital efficiency relative to peers.

The company faces medium liquidity risk, which could constrain financial flexibility amidst its rapidly increasing debt levels.

Revenue INR 20.68B, +10,7% YoY; Operating income +15,5% YoY.

• ▍Revenue INR 20.68B, +10,7% YoY
• ▍Operating income +15,5% YoY
• ▍Net income +26,0% YoY
• ▍Net margin 14.6%

Revenue INR 21.35B, +25,1% YoY; Operating income +27,5% YoY.

• ▍Revenue INR 21.35B, +25,1% YoY
• ▍Operating income +27,5% YoY
• ▍Net income +74,3% YoY
• ▍Net margin 23.0%

Revenue INR 20.28B, +31,4% YoY; Operating income +34,9% YoY.

• ▍Revenue INR 20.28B, +31,4% YoY
• ▍Operating income +34,9% YoY
• ▍Net income +30,4% YoY
• ▍Net margin 15.2%

Revenue INR 19.10B, +34,2% YoY; Operating income +32,0% YoY.

• ▍Revenue INR 19.10B, +34,2% YoY
• ▍Operating income +32,0% YoY
• ▍Net income +26,8% YoY
• ▍Net margin 16.7%

Revenue INR 18.68B; Operating income INR 3.28B.

• ▍Revenue INR 18.68B
• ▍Operating income INR 3.28B
• ▍Net margin 12.8%

Revenue INR 17.07B; Operating income INR 3.66B.

• ▍Revenue INR 17.07B
• ▍Operating income INR 3.66B
• ▍Net margin 16.5%

Revenue INR 15.43B; Operating income INR 3.11B.

• ▍Revenue INR 15.43B
• ▍Operating income INR 3.11B
• ▍Net margin 15.3%

Revenue INR 14.23B; Operating income INR 3.11B.

• ▍Revenue INR 14.23B
• ▍Operating income INR 3.11B
• ▍Net margin 17.7%

Revenue INR 70.28B, +30,0% YoY; Operating income +14,6% YoY.

• ▍Revenue INR 70.28B, +30,0% YoY
• ▍Operating income +14,6% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow −22,9% YoY
• ▍Net margin 15.3%

Revenue INR 54.06B, +18,5% YoY; Operating income +24,5% YoY.

• ▍Revenue INR 54.06B, +18,5% YoY
• ▍Operating income +24,5% YoY
• ▍Net income −4,2% YoY
• ▍Free cash flow −58,0% YoY
• ▍Net margin 19.6%

Revenue INR 45.63B, +16,1% YoY; Operating income +38,4% YoY.

• ▍Revenue INR 45.63B, +16,1% YoY
• ▍Operating income +38,4% YoY
• ▍Net income +82,4% YoY
• ▍Free cash flow +277,6% YoY
• ▍Net margin 24.2%

Revenue INR 39.31B, +57,0% YoY; Operating income +19 904,3% YoY.

• ▍Revenue INR 39.31B, +57,0% YoY
• ▍Operating income +19 904,3% YoY
• ▍Net income +539,9% YoY
• ▍Free cash flow +550,2% YoY
• ▍Net margin 15.4%