Why Is Max Healthcare Facing Profitability Pressure Despite Target Upgrade?
Macquarie’s Assessment
Macquarie has maintained its Underperform rating on Max Healthcare while increasing the target price to ₹825 from ₹615. The brokerage expects FY2026 to remain subdued as fresh capacity additions weigh on near-term margins.
Despite moderation in consensus estimates, Macquarie believes expectations still underestimate the profitability pressure arising from supply additions.
Key Risk Factors
🔹 Large bed capacity addition pipeline.
🔹 Demand growth lagging supply.
🔹 Margin normalisation risk.
The hospital sector often experiences cyclical margin compression during expansion phases before stabilising over the medium term.
Positioning with a Nifty Futures Tip approach can help manage drawdowns during such transitions.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes that valuation support alone is insufficient when sector supply outpaces demand. For Max Healthcare, monitoring utilisation trends will be critical before sentiment turns decisively positive. More sector analysis is available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
