Stocks to Buy: Shares of this 'super compounder' can rise another 30%, UBS predicts

Shares of Max Healthcare Institute Ltd. opened higher on Friday, October 17, after Swiss investment bank UBS raised its price target on the stock, describing it as a "super compounder."

UBS increased its price target on Max Healthcare by 15% to ₹1,550 from ₹1,350 earlier. The new target implies a potential upside of around 30% from the stock's closing price on Thursday. The brokerage has also maintained a 'Buy' rating on the stock.

According to UBS, Max Healthcare is well-positioned to deliver both capacity expansion and earnings growth. The brokerage said that a Central Government Health Scheme (CGHS) price increase would provide a meaningful tailwind for the company.

UBS estimates an 18% compound annual growth rate (CAGR) in bed additions between FY25 and FY28, with around 80% of new capacity coming in Metro and Tier-1 markets.

The brokerage expects Max Healthcare to deliver EBITDA and earnings per share (EPS) CAGRs of 30% and 33%, respectively, over FY25–28, which justifies its premium valuation.

Max Healthcare shares are now trading 0.85% higher at ₹1,185.30. The stock is up 4% in 2025 so far.

With inputs from Nimesh Shah