Max Healthcare slumps on high volume

Max Healthcare Institute fell 5.11% to Rs 349.30 after series of bulk deals in early trade.

The media reported that Kayak investments Holdings, an affiliate of American private equity major KKR, is selling as much as 6.34 crore shares or 6.57% of Max Healthcare at an indicative price range of Rs 350-369.70 per share, a discount of about 5.3% to the scrip's closing price on Tuesday. The base deal size is Rs 2,220 crore.

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

In August, Kayak Investments Holding completed an open market sale of 27,26,754 equity shares, constituting 0.28% equity of Max Healthcare Institute to comply with the minimum public shareholding threshold set by the market regulator SEBI.

On the BSE, 56.89 lakh shares were traded on the counter compared with the average daily volume of 93,000 shares in the past two weeks.

On the NSE, 9.22 crore shares were traded on the counter compared with the average daily volume of 19.49 lakh shares in the past one quarter.

The stock hit a record high of Rs 472.60 on 16 September 2021. It has risen 240.78% from its 52-week low of Rs 102.50 hit on 29 October 2020.

In the past one month, the stock has fallen 4.15% as against 5.80% rise in the Sensex. It has jumped 207.72% in the past one year compared with 56.38% surge in the Sensex.

On the technical front, the stock's RSI (relative strength index) stood at 37.39. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day simple moving average (SMA) placed at 365.71 and 200-day SMA at 367.48.

On a consolidated basis, Max Healthcare Institute reported a net profit of Rs 146.92 crore in Q1 FY22 as against a net loss of Rs 291.20 crore in Q1 FY21. Net sales during the quarter increased 290.30% to Rs 1,000.17 crore recorded in the same period last year.

Max Healthcare Institute is one of India's largest hospital chain operator (considering only income from healthcare services) in fiscal 2020. It has major concentration in North India consisting of a network of 16 healthcare facilities. Out of the total network, eight hospitals and four medical centres are located in Delhi and the NCR and the others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun.

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