Max Healthcare: A Growing Force in India’s Healthcare Sector

• Max Healthcare has a market capitalization of ₹3.5 trillion, a ninefold increase since Fiscal Year (FY) 2020. This increase is due to improved pricing, higher insurance penetration, and the focus on complicated treatments such as transplants.
• The Indian hospital industry was valued at $98.38 billion in 2023 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 8% from 2024 to 2032. Public expenditure on healthcare in India was 1.9% of GDP in FY 2024.
• In the first quarter of fiscal year 2025 (Q1 FY25), Max Healthcare’s consolidated revenue increased by 20% year-over-year due to improved inpatient volume, bed expansion, improved Average Revenue Per Occupied Bed (ARPOB), and stable occupancy levels.
• Max Healthcare’s consolidated occupancy rate in FY 2024 averaged 74%, a decrease from 76% in FY 2023. This decline is due to the increased number of operational beds. In absolute terms, occupied bed days increased in FY 2024 by 7% compared to FY 2023.
• Max Healthcare’s ARPOB in FY 2024 was ₹75,800, an increase from ₹67,400 in FY 2023. This is due to price revisions, increased traction from international medical tourism, and a greater share of oncology, high-end, and robotic surgeries.
• Max Healthcare’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per bed in Q2 FY 2025 was ₹74.5 lakhs, a decrease from ₹75.0 lakhs in Q2 FY 2024 and an increase from ₹70.9 lakhs in Q1 FY 2025.
• Max Healthcare’s network revenue grew by 16% in FY 2024 and by approximately 19% in Q1 FY 2025. This growth was driven by higher inpatient volumes and a shift in specialty mix towards higher-value specialties. Max Healthcare’s consolidated revenue in FY 2024 was ₹5,437 crore, a 19.17% increase compared to ₹4,562.60 crore in FY 2023.
• The operating margin for Max Healthcare’s network was 26.87% in FY 2024, while the consolidated operating margin was 28.23%.

Please note that this information may not reflect Max Healthcare’s complete financial picture. I recommend conducting thorough research and consulting financial experts for a more comprehensive valuation assessment.