Max Healthcare is India’s second Largest Hospital Chain. Max has 17 Facilities having 3400 Bed capacity. Approx 85% of the beds are in metros. Max Healthcare has created its niche in the healthcare space, through its commitment to have the highest standards of clinical excellence as well as patient care. It has the ambition to be the most well-regarded healthcare provider in India backed by latest technology and cutting-edge research
Radiant Life Care and Max Healthcare merged in 2020 to create a combined entity focused on Healthcare business. During 2021, Company have raised 1200 Crores through Qualified Institutional Placement (QIP), which shows the confidence of the investors in the business and leadership. SBI Mutual Fund, Smallcap World Fund, HDFC Mutual Fund, Canara Robeco Fund, Motilal Oswal Mutual Fund are some of the top public investors holding more than 1% shareholding. Mr Abhay Soi holds 23.2% & KKR holds 37.7% through its SPV.
Company has niche in performing the complex procedures related to transplants, robotics surgery, cardiac procedures, neuro surgeries, orthopaedic surgeries, oncology surgery etc. Company has a state-of-the-art infrastructure with an excellent research and academics foundation. It has an annual run rate of performing 1030+ Robotics Surgeries, 39,400+ cardiac procedures, 8450+ Neuro surgery etc
Company has dominant presence in Delhi NCR, Mumbai, Chennai, Bengaluru, Hyderabad, Delhi and Mumbai have the significant demand supply mismatch, coupled with insurance penetration and high per capita income leading to highest Average Revenue Per Occupied bed (ARPOB) and making it most profitable hospital markets in India.
Delhi has just 2.5 beds per ‘000 population whereas in Mumbai its mearly 1.9. Whereas if we look at the quality beds, statistics is limited to .4 per ‘000 population. Max Healthcare has 2700 beds in Delhi NCR & Mumbai compared to its peers.
Company has significantly higher Pre-tax ROCE when compared with its peers like Apollo and Fortis. During FY 2020, Company has Pre-tax ROCE of 11%, which increased to 26% in FY 2021. During the half year ended FY 2022, company has Pre-tax ROCE of 30%.
Company has many levers of growth. Business is generating strong cash flows driven by increasing health insurance penetration, better patient mix, increasing ARPOB, growth in medical etc. EBITDA is growing faster than revenue. During the recent quarter, Q2 FY22 EBITDA grew by 12% QoQ, while revenue recorded 8% QoQ growth. Company has higher growth plans and is Redeploying its funds to higher ROCE projects. Company has ability to leverage its Balance Sheet for further acquisitions and expansion as its Net debt has reduced from INR 1,989 Cr as on Sep 30, 2020 to INR 259 Cr as on September 30, 2021.
Company has a valuable land bank for enabling further addition 3300+bed capacity. It’s key portfolio includes Nanavati, Max Shalimar Bagh Delhi, Max Saket etc.
Company is under the visionary leadership of Mr. Abhay Soi who has built the company brick by brick, backed by his vision. Strong leadership, vision and Corporate Governance are working in tandem to create value for all its stakeholders.
As on 15th December 2021, Max Healthcare closed at Rs 386.35 in BSE. ( Market Cap RS 37,460 Cr, FF 14,609)
Bureau Galactik Views