Max Healthcare Institute Ltd.
ISIN: INE027H01010 • Market Cap: ₹96,982 Cr
The 5-Pillar Quality Audit for Max Healthcare Institute Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (26.6%), Return on Capital Employed (13.1%), and equity compounding (13.4%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.27 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.2%) and 3Y PAT CAGR (11.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 66.57 vs PEG of 3.23 and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 23.7%, backed by 71.7% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 17.2%)
Revenue has expanded at 17.2% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (71.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 71.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 66.57)
A steep valuation multiple of 66.57 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking MAXHEALTH against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare MAXHEALTH directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Max Healthcare Institute Ltd. (MAXHEALTH)Current | 70/100 | ₹96,982 Cr | 66.57 | 13.1% | 0.27 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Max Healthcare Institute Ltd.
Q:What is the 5-Pillar Fundamental Score for Max Healthcare Institute Ltd. (MAXHEALTH)?
Max Healthcare Institute Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (74/100), Financial Health (81/100), Growth (78/100), Valuation (32/100), and Ownership Quality (72/100).
Q:Is MAXHEALTH fundamentally strong for long-term investment?
Yes, MAXHEALTH exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 13.4% and a debt-to-equity ratio of 0.27.
Q:Does MAXHEALTH pass the Coffee Can Investing filter?
No. MAXHEALTH does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does MAXHEALTH compare against other Healthcare peers?
Within India's Healthcare sector, MAXHEALTH trades at a P/E of 66.57 and generates an ROCE of 13.1%. Compare its 5-Pillar score of 70/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.