Max Healthcare share price jumps 10%; here's why

Shares of Max Healthcare Institute (MHI) jumped over ten per cent in early trade on Tuesday. The counter jumped 10.8% to Rs 400.70 a share on the BSE in early intraday trade amid spurt in volume. The volume soared to whooping 7883.18 times on Tuesday.  

The company on Wednesday said its consolidated net profit increased by 12 per cent to Rs 229 crore for the June quarter, driven by annual price revision and normalisation of patient footfalls. The healthcare provider had reported a net profit of Rs 205 crore in the June quarter of last fiscal. Net revenue during the period under review rose to Rs 1,393 crore as compared with Rs 1,322 crore in the April-June quarter of the last fiscal. 

Max Healthcare Institute has reported healthy Q1FY23 numbers, driven by strong improvement in APROB with normalisation in business with improvement in patient footfalls, brokerage firm Edelweiss Research had said while initiating coverage on the counter.  

"MHI’s Q1FY23 revenue/EBITDA/PAT were 8%/10%/8% above our expectations. The strong recovery in non-COVID-19 business led to ~6%, 7% and 12% YoY growth in net revenue, EBITDA and PAT to INR1,393cr, INR359cr and INR229cr, respectively," it said.  

MHI has reported highest ever EBITDA per bed in Q1FY23 i.e. INR 62lacs per bed which expected to improve further with the favourable payor mix change in coming years, however, occupancy has come to level of 75-77% which we believe will maintain at current level in future, said Edelweiss.  

"The expansion plans are also on track to add 4,314beds in next 5-6 years. We maintain our positive outlook on the company, keeping in mind its asset-light strong expansion plans with superior RoCE and sector-leading ARPOB," it added.