Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6%

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Sep 30, 2021 - Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6%

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6%

Sep 30, 2021

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6%

Max healthcare shares fell 6% to Rs 345.4 per share on the BSE yesterday on the back of heavy volume and bulk deals.

That's the biggest single-day loss since 17 September, when the stock dropped 10.6%. The scrip was the second-worst performer on BSE 500 and Nifty 500.

According to a media report, Kayak Investments Holding, one of the promoter entities of Max Healthcare, on Wednesday sold 84.4 m shares of the company for Rs 29.6 bn through open market transactions.

The shares were picked up by Veritas Funds Plc, SBI Mutual Fund and HDFC Mutual Fund among others.

As many as 60.2 m shares were sold at an average price of Rs 350, while 24.2 m scrips were divested at Rs 350.13. At these prices, the transactions were valued at Rs 29.6 bn.

The sale of a 6.6% stake by Kayak Investments is considered to be one of the largest block deals of the market to take place on 29 September 2021.

As of 30 June 2021, Kayak Investments held a 47.24% stake in Max Healthcare Institute.

In August 2021, Kayak Investments Holding completed an open market sale of 2.7 m equity shares, constituting 0.28% equity of Max Healthcare to comply with the minimum public shareholding threshold set by the market regulator.

--- Advertisement ---
Automobile Sector's Colossal Disruption Could Make You a Fortune

During any major disruption in a sector, fortunes are created.

And now, we are at the cusp of a major disruption that the automotive sector will experience.

It is the electric vehicles gold rush.

At Equitymaster, we have unearthed a hidden way to ride the 15x EV opportunity so that you could take home potentially life-changing gains in the long run.

You can get all details of the hidden way in our upcoming special online event.

YES, Register Me for FREE
------------------------------

Who leads the company and who are the other shareholders?

Abhay Soi is the promoter, chairman and managing director of Max Healthcare Institute.

Prior to the acquisition and merger with MHIL, Soi was the promoter, chairman, and managing director of Radiant Life Care Private Limited.

Both Radiant and Max Healthcare merged on 1 June 2020, resulting in the 2nd largest hospital company in India in terms of revenue.

Currently, Abhay Soi holds 23.18% stake in the company. In last 3 months, his holding in the company has increased by 1.4%.

Also, in the last few months, mutual fund holding of the company has increased significantly. They hold 7.9% stake in the firm.

That apart, Ashish Dhawan, one of the most popular private equity investors, holds 1.42% stake in the company. However, in the past few months, he has decreased his stake by 0.36%.

To know more, check out Max Healthcare's latest shareholding pattern.

Company achieved highest-ever operating profit in June quarter

The company reported strong results for the quarter ended June 2021, with the highest-ever operating profit and margin.

Max Healthcare reported the highest ever network operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) at Rs 3.6 bn, a 37% increase quarter-on-quarter (QoQ). This is the third consecutive quarter of the highest EBITDA both in absolute and margin terms.

The company's network gross revenues rose to Rs 13.9 bn during the first quarter reflecting a growth of 124% year on year (YoY).

FREE Event: Discover Your First Stock for a Potential Rs 7 Crore in Long-term Wealth

Max Healthcare aims to be debt-free by third quarter of 2022

As on March 2021, the company has total debt of Rs 4.8 bn compared to Rs 6.6 bn reported in the same period of the last year.

On the debt reduction plan Abhay Soi said,

  • Going forward, if one were to assume and just for calculation purposes, because I don't give topline guidance, but if one were to assume a 10% growth on topline, then our free cash flows would be increasing materially by about 18-20% per year.

    In the next four to five years, we should be generating through internal accruals alone, close to about Rs 50 bn to Rs 60 bn and this is on our debt-free balance sheet, I mean, effectively as we speak, my current debt levels are perhaps lower than my last quarter's EBITDA.

He further added that there will be significant debt reduction within this current quarter and hopefully by next quarter, the company will be a debt-free.

Improvement in non-Covid business

With the reduction in Covid cases, MHI is seeing a strong rebound in its non-Covid business, resulting in an increase in its total average revenue per occupied bed (ARPOB).

Max Healthcare is also aiming for a 79-80% occupancy rate, which will help to improve its financials further.

Due to the countrywide lockdown and farmers' protest last year, the firm was unable to operate at full capacity. As a result, the company's was badly hit.

The company's outpatient department (OPD) business has yet to fully recover, and its foreign business (which contributes 10-12% of revenue) has only recovered to 60% of pre-Covid levels.

--- Advertisement ---
3 "Super Smallcaps" You Didn't Know About

You may not have heard of these 3 "super smallcaps" ever before...

The mainstream press doesn't cover them... Most brokers don't know about them either...

Stocks like these 3 "super smallcaps" only come to your notice when they have rallied by hundreds or even thousands of percent... and are all over the news!

Richa revealed it all during her Super Smallcaps Summit

If you missed this event for some reason, then you can watch the special replay of this event.

Click Here to Watch the Replay...
------------------------------

How the stock markets reacted to Max Healthcare

Shares of Max Healthcare opened the day at Rs 354.7 on the BSE and Rs 354 on the NSE.

Its share price closed at Rs 355 (down 3.6%) on the BSE and Rs 355.1 (down 4%) on the NSE.

At its current price, it is trading at a P/E of 107.

The share touched its 52-week high of Rs 472.6 and 52-week low of Rs 102.5 on 16 September 2021 and 29 October 2020, respectively.

Over the last 30 days, the Max Healthcare share price is up 6.3%. Over the last one year, the company's share price is up 207%.

Max Healthcare - 1 Year Performance

About Max Healthcare Institute

Max Healthcare Institute is one of India's largest healthcare firms.

It operates 16 healthcare facilities (3,400 beds) across the NCR Delhi, Haryana, Punjab, Uttarakhand, and Maharashtra. Almost 85% of total bed capacity is in Metro or Tier 1 cities.

Apart from hospitals, Max Healthcare also operates a homecare business and pathology business under brand names Max@Home and Max Labs respectively.

Max@Home offers health and wellness services at home while Max Lab provides pathology services outside hospital network.

For more details about the company, you can have a look at Max Healthcare's factsheet and quarterly results on our website.

You can also compare Max Healthcare with its peers.

Max Healthcare vs Apollo Hospitals

Max Healthcare vs Fortis Healthcare

Max Healthcare vs Metropolis Healthcare

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6%". Click here!

  

More Views on News

MAX HEALTHCARE INSTITUTE 2020-21 Annual Report Analysis (Annual Result Update)

Oct 22, 2021 | Updated on Oct 22, 2021

Here's an analysis of the annual report of MAX HEALTHCARE INSTITUTE for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of MAX HEALTHCARE INSTITUTE. Also includes updates on the valuation of MAX HEALTHCARE INSTITUTE.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

5 Indian Pharma Companies Riding the Vaccination Wave (Views On News)

Sep 3, 2021

These companies are likely to benefit the most from Covid-19 vaccines.

More Views on News

Most Popular

All You Need to Know About Primary and Secondary Markets

A look at the various types of primary and secondary markets and the key differences between them.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MAX HEALTHCARE INSTITUTE SHARE PRICE


Dec 1, 2021 (Close)

TRACK MAX HEALTHCARE INSTITUTE

  • Track your investment in MAX HEALTHCARE INSTITUTE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON MAX HEALTHCARE INSTITUTE

MAX HEALTHCARE INSTITUTE 8-QTR ANALYSIS

COMPARE MAX HEALTHCARE INSTITUTE WITH

MARKET STATS