Moneycontrol
May 18, 2017 01:35 PM IST | Source: Moneycontrol.com

Buy Apollo Hospitals; target of Rs 1540: Edelweiss

Edelweiss is bullish on Apollo Hospitals has recommended buy rating on the stock with a target price of Rs 1540 in its research report dated May 15, 2017.

Buy Apollo Hospitals; target of Rs 1540: Edelweiss

Edelweiss' research report on Apollo Hospitals


Set up at total planned capex of INR5bn, the Navi Mumbai facility is APHS’ most significant green-field tertiary care investment in past few years. Currently, 100 beds are operational and 100/150/150 more beds will be added during FY18/19/20, respectively. Most of the specialities are also ramping up well.


Outlook


We estimate 22% EBITDA CAGR and RoCE to jump by 377bps to 12.5% over FY17-19, implying valuation of 17x FY19E EV/EBITDA. Maintain ’BUY/SO’ with TP of INR 1,540.


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