Shares of Max Healthcare Institute rallied over 6.58% to ₹1,093.70 on the NSE on Thursday, compared with its previous close of ₹1,026.15. According to reports from The Hindu BusinessLine, the stock surge made Max Healthcare one of the top gainers on the benchmark indices during the session. The rally was triggered by positive analyst commentary from global brokerage Citi. On June 18, the broader market showed mixed performance with the SENSEX closing 254.36 points or 0.33% higher at 77,409.98 and the NIFTY50 surging 82.30 points or 0.34% to end at 24,168.00. The NIFTY Smallcap index increased by 82.40 points or 0.44% to end at 18,705.60, with Max Healthcare among the top performers in this segment as well.
Global brokerage Citi maintained its buy rating at a target price of ₹1,240 for Max Healthcare Institute. As reported by The Hindu BusinessLine, the brokerage described the current weakness as a buying opportunity and indicated confidence in the company's long-term growth prospects. Citi expects the company to deliver improvements in its balance sheet and return on capital employed (RoCE) despite pursuing an aggressive expansion strategy.
According to Citi's analysis, the company is expected to post a compound annual growth rate (CAGR) of around 20% in EBITDA between FY26 and FY30. As reported by The Hindu BusinessLine, the brokerage noted that near-term challenges are likely to be transient, adding that the disruption in the oncology business should be largely absorbed in the first half of the fiscal year. The positive outlook reflects Citi's confidence in Max Healthcare's long-term strategic positioning.
