Max Healthcare Institute, a hospital chain, saw its foreign institutional investors (FII) holdings reach an all-time high of 49.3 percent in the September quarter. FIIs had held a stake of 14.2 percent in the company in the second quarter of the last fiscal.
A similar trend was seen when it comes to domestic institutional investors, who increased their holdings from 8.7 percent to 21.2 percent in Q2 FY23.
While institutional investors continue to bet on the company, general shareholders have trimmed their stake to 5.8 percent in Q2FY23 from 16.2 percent in the September 2021 quarter.
Among some key foreign investors, Small Cap World Fund increased its stake in the company to 6.92 percent YoY in Q2 FY23, according to Trendlyne data. While the domestic institutional investor SBI-Focused Equity Fund raised its stake in Max Healthcare to 9.64 percent in the September 2022 quarter from 1.97 percent in Q2 FY22.
The stock, which debuted on the exchanges in August 2020 at ₹112, has risen to nearly ₹427, giving its shareholders returns of almost 281 percent.
On the financial side, the net profit of the company has been growing consistently for the last three quarters. In the recent September quarter, the company reported a sharp rise in its consolidated net profit to ₹511 crore, as against ₹207 crore in the year-ago period.
The net profit during the quarter “includes a one-time impact of ₹244 crore due to the reversal of deferred tax liability (net of capital gains tax) relating to intangible assets transferred to MHIL pursuant to the voluntary liquidation of Saket City Hospital Limited and distribution of its business undertaking in August 2022”.
The net profit would be ₹267 crore if the deferred tax were excluded. The healthcare provider's revenue from operations stood at ₹1,137.12 crore during the July-September period, up from ₹1,019.26 crore in the second quarter of last year.
The network operating EBITDA stood at ₹410 crore, compared to ₹362 crore in the corresponding quarter last year and ₹370 crore in the preceding quarter.
The operating EBITDA margin was 27.7 percent for the quarter, compared to 26.7 percent in Q2 FY22 and 26.6 percent in Q1 FY23.
The company's cash from operations came in at ₹287 crore in Q2 FY23, and its net cash as of September 30, 2022, was ₹42 crore.
The bed occupancy in Q2 FY23 was at 78 percent with about 1 percent of total occupied beds used for Covid-19 patients. The average revenue per operating bed (ARPOB) improved to ₹66,000 from ₹59,000 in Q2 FY22.
Following the quarterly results, domestic brokerage firm Prabhudas Lilladher said the company has shown phenomenal growth in the past two years, and it expects the momentum to continue in the coming quarters.
The brokerage has a "buy" call on the stock, with a revised target price of ₹500 per share, up from ₹472 previously.
The company currently operates 17 facilities, with more than 3,400 beds across Delhi-NCR, Haryana, Punjab, Uttarakhand, and Maharashtra. Apart from hospitals, Max Healthcare also operates a homecare business and a pathology business under the brand names Max@Home and Max Labs, respectively.
Eight analysts polled by MintGenie on average have a strong 'buy' call on the stock
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.