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* Launched Max Dwarka, Delhi: Max Super Specialty Hospital in South West Delhi (Dwarka) commenced commercial operations with a 303-bed capacity. Operated under an O&M contract with M/s Muthoot Hospital Pvt Ltd, which owns and constructed the facility, this hospital boasts cutting-edge technology, including advanced imaging and surgical robots. The current focus is on expanding its international patient base and expects most TPA and insurance empanelment to be completed by the end of August 2024. Additionally, a stand-alone oncology block with bunkers is under construction, and the hospital anticipates offering radiation therapy to oncology patients by early FY26. Company expects to break-even in this facility within 6-8 months.

* Outlook & Valuation: Max Healthcare is seen favorably due to several strategic factors. 1) a significant capital expenditure cycle is anticipated to enhance ROCE over the next 3-5 years; 2) a rising proportion of international patients; 3) the company's focus on advanced specializations, such as robotics, and an improved payor mix are expected to drive higher revenue and margins; and 4) Max Healthcare is expanding its bed capacity and experiencing growth from both new and existing facilities, contributing to its positive outlook. We value the stock based on the SOTP methodology to arrive at a price target of INR 964 and recommend a BUY rating on the stock.

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SEBI Registration no.: INZ 000160131