Tag: Max Healthcare

Max Healthcare to acquire Nagpur-based Alexis Hospital for ₹412 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Max Healthcare Institute Ltd on Friday, February 9 announced the acquisition of 100% stake in Nagpur-based Alexis Multi Speciality Hospital at an enterprise value of ₹412 crore.

In a stock exchange filing, the leading private healthcare provider said the acquisition will help expand its footprint in the western market and is in line with its strategy to increase the presence in tier-2 cities.

Alexis Hospital is the only JCI-accredited hospital in Nagpur, Maharashtra, with a capacity of 200 beds, which can be expanded to 340 beds, the company said.

The hospital provides tertiary care services such as oncology (including radiation), neurology, organ transplant, cardiology, gastroenterology and diagnostics facilities.

The hospital is built over a land parcel of 2 acres has a built-up area of 2.25 lakh sqft spread across six floors. It is located at Mankapur, North of Nagpur, which is a residential and commercial hub.

Alexis Hospital has a current run rate of revenue and EBITDA at ₹150 crore and ₹25 crore, respectively, Max Hospital said.

On expansion, Max Healthcare said that the bed capacity can be expanded to 340 beds. The hospital medical programme can be further strengthened in the surgical specialties such as oncology and neurosciences, urology, and CTVS, which can help improve average revenue per occupied bed and occupied bed days, the company said.

“The acquisition of Alexis Hospital is in line with our vision to expand our footprint in tier 2 cities with abundance of clinical talent and developed private healthcare infrastructure,” Max Healthcare Institute Ltd Chairman and Managing Director Abhay Soi said.

Max Healthcare has a major concentration in North India with a network of 17 facilities. Of these, eight hospitals and four medical centres are located in Delhi-NCR. The others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun.

Max Healthcare shares were trading lower by 1.03% at ₹861.05 apiece on BSE at 11.06 AM.

Also Read: Rail Vikas Nigam shares fall over 5% after Q3 profit dips, margin pressure

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oncology growth boosts Max Healthcare’s average revenue per bed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Max Healthcare’s has seen a 20-25% compounded annual growth rate (CAGR) in its oncology business and this is helping drive up the average revenue per occupied bed (ARPOB), Abhay Soi, CMD of the Delhi-based hospital chain , told CNBC-TV18.

“While the rest of our organisation has been growing at around 14 or 15%, our Oncology program has been growing at over 20%. Oncology brings in more money per bed compared to other medical services,” he said.

Two key reasons for this strength were the growth in international patients, which has been increasing at a rate of 25% every year, and the increasing penetration of insurance, he added. “As more people have insurance, they care less about the cost and more about the reputation of the hospital. They are willing to pay more for surgeries in larger hospitals like ours. This segment has been growing at about 25-26% annually.”

In its Q3 results, Max Healthcare mainly attributed its growth to an increase in the ARPOB, which rose by 15% compared to the previous year. However, the report also noted a decrease in the occupancies and a reduction in profit margins.

Soi said the decline in occupied beds was the effect of a high base. Also, last year, the hospital had a large number of dengue patients, which hasn’t been the case this year. That led to a minor impact on occupancy rate.

Read Here | IPO proposal from one of India’s top three distributors of healthcare products is approved

Urging investors to focus more on the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) per bed, Soi said, even though profit margins have contracted by 30-40 basis points, the EBITDA per bed has been consistently increasing. “This is the 13th consecutive quarter of growth in EBITDA per bed, showing steady progress over time,” he noted.

Also Read | Interim Budget 2024-25 — right focus on healthcare, but implementation will be critical

Max Healthcare shares have gained close to 75% over the past year. The company has a market share of ₹74,850 crore. 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rising popularity of high-cost robotic surgeries to boost revenue per bed: Max Healthcare

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Private hospital chain Max Healthcare Institute on November 7 said that given the seasonal nature of the business, it expects to outperform in the second half of the fiscal year compared to the first half in which it recorded a revenue of ₹3,361 crore.

In a post-earnings chat with CNBC-TV18, Chairman and Managing Director Abhay Soi spoke about the increase in demand for robotic surgeries. He said this year, the hospital chain did twice the number of robotic surgeries compared to the previous year.

“We have about 20 robots across the country, across most of our healthcare systems. And, the demand for that is increasingly moving up. Usually, it costs about ₹60,000 to ₹70,000 more for that sort of surgery but that is the low end. It will go up to ₹150,000 more as far as robotics is concerned.”

What is robotic surgery?

Robot-assisted surgery, or robotic surgery integrates advanced computer technology with a surgeon’s hands-on experience to assist in performing complex procedures. The robots replicate a surgeon’s hand movements to operate, thus, minimising risks due to unexpected hand tremors or jerks.

Robotic surgery leads to less tissue damage, minimal blood loss, faster recovery, micro-precision, greater flexibility while performing surgery, reduced risk of infection and less pain, according to Max Healthcare.

How the September quarter panned out for Max

The Delhi-based hospital chain’s revenue for the quarter was up 17% over last year, at ₹1,732 crore. The increase in revenue was attributed to an increase in the average revenue per occupied bed (ARPOBs), improved occupancy and better patient mix.

EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanded to 28.7% from 27.7 % in the year-ago period.

Max Healthcare CMD’s remark came as

The hospital operator’s occupancy — the number of beds effectively occupied — stood at 77% in the second quarter of the fiscal while occupied bed days (OBD) i.e. the number of occupied beds for each day of the period grew by over 3% on year.

The average revenue per occupied bed (ARPOB) also improved to ₹74,600 in the second quarter as against ₹66,000 last year. The spike in ARPOBs further aided the improvement in operating metrics. However, on a sequential basis, ARPOB declined by ₹200. The firm expects to see an average revenue per occupied bed at ₹73,000 for FY24.

The company’s shares ended the day a little over a percent lower at ₹591 apiece.

Watch the accompanying video for more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indus Towers may see block deal, FIIs buy Birlasoft: Dealing Room Check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Indus Towers ended 4.5% higher on Tuesday, snapping a five-day losing streak in the process. The stock has declined in six out of the last seven trading sessions.

Sources within the dealing rooms told CNBC-TV18 that a large block deal is likely to take place in the stock soon.

Despite today’s gain, Indus Towers shares are still down 1.5% for the year 2023 so far.

A Strong Session

Benchmark indices ended near the day’s high on Tuesday backed by strong institutional buying. The Nifty 50 recovered all of Monday’s losses and gained over a percent.

Dealers also said that there was a small market at close basket buying seen across multiple stocks at a leading FII desk in today’s session.

Broader markets also recovered in today’s session, ending with gains of 1.5% led by a rally in Real Estate, PSUs and Metal stocks.

Besides Indus Towers, these stocks made it to the dealing room chatter today:

Birlasoft: Shares ended 4.4% higher on Tuesday, ending higher for the second day in a row. The stock has gained in three out of the last four trading sessions. Dealers said that FIIs were buyers in the stock and the street is anticipating a strong quarter from the company this time around.

Max Health: The stock ended 1.2% lower and has declined in four out of the last five sessions. Despite the consolidation, dealers said that a leading long-only FII is an active buyer in the stock.

J&K Bank: First signs of institutional buying is emerging in this stock according to the dealers. The street is also expecting higher delivery volumes for the quarter. The stock ended 3.2% higher on Tuesday and has gained in three out of the last four trading sessions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IIM Kashipur and Max Healthcare forge partnership to launch hospital management program

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

The Midcap and Smallcap rally has prompted these analysts to drop their recommended portfolio – Here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Brokerage firm Kotak Institutional Equities has dropped its recommended midcap portfolio as it does not find many stocks beyond the Banking and Financial Services (BFSI) space that offers decent upside potential to their 12-month price targets.

While the Nifty Midcap index has gained 31 percent so far in 2023, the Smallcap index is up 33 percent. Both the indices are trading at a record high.

Most of the non-BFSI stocks in Kotak’s midcap portfolio are trading above their 12-month price target. “The valuation of stocks in our favourite capital goods, healthcare, QSR and Real Estate sectors discount growth for the next few years and leave absolutely no room for any disappointment,” the Kotak note by Sanjeev Prasad, Anindya Bhowmik and Sunita Baldawa said.

“We see limited point in trying to find fundamental reasons behind the steep increase in stock prices of several mid-cap and small-cap stocks. There is no meaningful change in the fundamentals of most companies,” the note said, adding that in some cases, it has even worsened.

Kotak’s note attributed the rally to “irrational exuberance among investors,” with high return expectations being driven by the high returns of the past few months.

It attributed the market sentiment to be exuberant based on three factors:

• Steep increase in the prices of many mid and smallcap stocks
• Large inflows into mid and smallcap mutual funds and
• Huge number of new retail participants in the midcap and small cap funds

Pankaj Tibrewal of Kotak Mahindra AMC told CNBC-TV18 last week that over 1.9 million new folios have opened in smallcap funds. You can read more about his cautious stance on the broader markets here.

Kotak’s note also spoke about many stocks that are being termed as turnaround stories. “Many of these companies have been through serious operational and financial challenges in the recent past, but the market has high hopes of these companies doing well in the future.”

“We are not sure of the basis of the market’s confidence,” the analysts wrote in their note.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Max Healthcare moves Bombay HC against arbitrator’s interim order in dispute with Care Hospitals 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals, Max Healthcare and Fortis Health — here’s why this analyst is positive on listed hospitals space

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Improved occupancy level, increasing utilisation of infrastructure and thereby an expected growth in income generation are driving market optimism in the listed hospitals space. Param Desai, Research Analyst at Prabhudas Lilladhar, in a recent interview with CNBC-TV18, expressed a positive sentiments about the listed healthcare service providers.

“We are structurally positive on the space,” said Desai.

“Our preferred picks in the space are Apollo Hospitals, Max Healthcare and Fortis Health,” he added.

According to Desai, one of the key factors driving optimism in the listed hospitals sector is the potential for improved occupancy levels. Many hospital companies have yet to reach the optimal utilization of their infrastructure and resources. This presents a significant opportunity for growth, as increasing occupancy rates would lead to enhanced revenue generation and overall operational efficiency.

The fiscal year 2024 is anticipated to be a turning point for hospital companies, with an expected improvement in occupancy rates.

“We believe that earnings momentum will sustain going forward,” he said.

Also Read | Hospital, diagnostics companies poised for growth in India — these analysts see their strong growth potential in tier-2, 3 towns

Desai believes that despite most hospital companies not having reached the optimum occupancy levels, the upcoming fiscal year 2024 holds promise for improvements in occupancy rates. Additionally, Desai highlighted the growth potential for Fortis through its ongoing brownfield expansion initiatives, which could pave the way for margin expansion.

Desai also highlighted Fortis Healthcare’s strategic approach to expansion, specifically through brownfield projects. Brownfield expansion involves expanding existing facilities to maximize their potential, rather than building entirely new hospitals. Desai believes that Fortis’ ongoing brownfield expansion initiatives offer significant scope for margin expansion. By optimizing existing infrastructure and leveraging economies of scale, Fortis aims to enhance operational efficiency and drive profitability.

As healthcare needs rebound and hospital footfall increases, the listed hospitals sector stands to benefit from these favorable developments, paving the way for sustained growth and profitability.

For more details, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Max Healthcare predicts boost in medical tourism thanks to government support

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With the positive impact of government support on medical tourism in India, the healthcare sector can become a significant contributor to the country’s economy. By attracting patients from abroad, India has the potential to generate substantial revenue and create employment opportunities for thousands of healthcare professionals.

In an interview with CNBC-TV18, Abhay Soi, CMD of Max Healthcare Institute, said that he is optimistic regarding the government’s role in aiding medical tourism, adding that the government’s initiatives are set to pave the way for a thriving medical tourism industry in the country, benefiting patients, healthcare professionals, and the overall economy.

He said, “You will see great growth in the short run, but you are going to see phenomenal growth in the medium term with Heal in India and all the support that we are getting from the government, it is going to pay off in spades.”

Also Read | What companies must do to improve maternity health cover in India

Soi expressed his gratitude to the government for recognising the potential of medical tourism and providing the necessary support. He believes that this will enable India to establish itself as a preferred destination for international patients seeking high-quality medical care.

Also Read | The Medicine Box | Here’s why hospitals are bullish on the prospect of medical tourism

Talking about ambitious expansion plans, Soi said that within the next six months, they expect to add another 300 beds to their facilities. This move will not only enhance the hospital’s capacity to serve more patients but will also provide an additional boost to medical tourism in India.

Max Healthcare Institute is renowned for its state-of-the-art infrastructure, advanced medical technology, and highly skilled team of doctors and specialists. With the upcoming addition of 300 beds, they aim to further strengthen their position as a leading healthcare provider in the country.

For more details, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hindustan Aeronautics, Power Finance, Max Healthcare may get added to MSCI Standard Index on May 11

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The MSCI index review announcement is due on May 11 post-market close.

According to IIFL Alternative Research, Hindustan Aeronautics Limited (HAL), Power Finance Corporation (PFC), and Max Healthcare might get added to the MSCI Standard Index and may see inflows between $136 million and $288 million.

Meanwhile, Indus Towers is likely to be excluded from the standard index and may see outflows to the tune of $75 million.

Following its updated shareholding pattern, Kotak Mahindra Bank is likely to see a weight increase and may see inflows of $741 million. Some of the other stocks where weight increases are possible include Interglobe Aviation and Zomato. Meanwhile the Adani group of stocks could see further weight decreases in the index.

Also Read: This market analyst reckons it’s a good time to book some profits and sit on cash – Here’s why

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow