Buy Max India for a target of 295-ShareKhan
December 30, 2009 by admin
Filed under Brokerage Recommendations
Sharekhan is bullish on Max India and has recommended buy rating on the stock with a target of Rs 295, in its December 30, 2009 research report.
“Max India plans to raise around Rs 725 crore collectively through a Rs550 crore fully and compulsorily convertible debentures (FCD) issue and another Rs173.4 crore by way of warrant issue to the promoter. The company has convened an extra-ordinary general meeting on January 22, 2010 to obtain shareholders’ approval for the FCD and warrant.”
“We have factored in the above-mentioned capital raising plan into our estimates based on the deployment plan disclosed by the management. We expect the capital infusion in the insurance business to allow optimum utilisation of the aggressively expanded branch network, while in the case of healthcare business the capital infusion gives us comfort in Max India’s ability to reach the target of 1,800 beds by FY2011. We maintain our Buy recommendation and price target (Rs295) on the stock,” says Sharekhan research report.
Source: Moneycontrol
