*What is Max Healthcare’s Expansion plan?* *By The Valuation School* Max Healthcare, one of India’s largest private hospital chains, is actively looking to buy more hospitals to expand its business. However, it will only invest in cities where other big hospital chains have already succeeded. *Acquisition Criteria* - The company is open to buying both profitable and loss-making hospitals. - The key requirement is that the hospital should be able to generate a 20-25% return on investment within 4-5 years. - It will only expand in places where at least one or two competitor hospitals have already proven successful. *Recent Hospital Acquisitions* Max Healthcare has already acquired several hospitals: - Nagpur (Alexis Hospital) – ₹412 crore - Lucknow (Sahara Hospital) – ₹940 crore - Noida & Bulandshahr (Jaypee Hospital) – ₹1,660 crore These hospitals are performing well, with their EBITDA more than doubling since acquisition. *Funding the Acquisitions* - Most of these purchases have been made using internal earnings. - Some debt has been taken, mainly for buying Jaypee Hospital. - The company's current net debt stands at ₹1,608 crore. *Financial Performance* - In Q3 FY25, Max Healthcare reported: - Revenue: ₹2,381 crore (34% growth year-on-year) - Profit (before exceptional items): ₹390 crore - Free cash flow from operations stood at ₹303 crore. *Jaypee Hospital – The Biggest Deal* - The Noida-based 500-bed Jaypee Hospital was acquired for ₹1,660 crore. - The deal also included the 200-bed Jaypee Hospital in Bulandshahr. - The hospital was already generating profits (₹70 crore EBITDA last year), and Max plans to increase its earnings further. *Future Plans* - Max Healthcare has a strong pipeline of new acquisitions. - The company is comfortable taking on more debt if needed, but only up to 2.5 times its EBITDA. - While it continues evaluating new hospitals, it will only invest in locations where other hospital chains have proven viability. *Acha laga, react & share karo & follow our social media for more updates & financial content:* ✅ WhatsApp Channel: https://t.ly/BJTRY ✅ Youtube: https://t.ly/lJqST ✅ Newsletter: https://t.ly/L2vK2 ✅ Instagram: https://t.ly/SLIX4 ✅ LinkedIn (Parth Sir): https://t.ly/mN4yj ✅ LinkedIn (The Valuation School): https://t.ly/Hbeh0 *NOTE:* This post is just for educational purpose and not a buy or sell recommendation.