Buy Apollo Hospitals; target of Rs 555: Firstcall Research

8404 Investors following Apollo Hospital. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Apollo Hospitals; target of Rs 555: Firstcall Research

Firstcall Research is bullish on Apollo Hospitals Enterprise and has recommended buy rating on the stock with a target of Rs 555 in its June 13, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy NALCO; target of Rs 98: Aditya Birla Money Buy Rainbow Papers; target of Rs 89: SKP Securities Buy Bank of Maharashtra; target of Rs 70: KRChoksey ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Apollo Hospital See messages about Apollo Hospital Apollo Hospital BSE | NSE 31/05/12 Are Mutual Funds betting on Apollo Hospital?

Firstcall Research is bullish on Apollo Hospitals Enterprise and has recommended buy rating on the stock with a target of Rs 555 in its June 13, 2011 research report.

"Apollo Hospitals Enterprise Ltd. Has grown to become the largest private healthcare company in India. The Company has declared a dividend of Rs 3.75 per share for the financial year ending 31, March 2010-11. Apollo hospital operates with 54 hospitals with total bed capacity of 8,717 beds as on Mar 31, 2011. Apollo Hospitals to render specialist health services to Tanzania with the sign of a MoU between India and Tanzania. During this quarter Apollo Hospitals in collaboration with Aircel Mobile has launched Mobile Health Care Service to Aircel Customers. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and18% over 2010 to 2013E respectively."

"During the quarter, the company disclosed a standalone profit of Rs 470.90 million as against of Rs 292 million for the quarter ended March 31, 2010. Net sales are increased by 29% to Rs 6214.00 million from Rs 4829 million in the same quarter previous year. In the same period, standalone operating income of the company was at Rs 6272.50 million, a rise of 28% over the prior year period. Company EPS is stood at Rs 3.78 for the quarter ended March 2011."

"At the current market price of Rs 483, the stock is trading at 28.18 x FY12E and 24.36 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs 17.14 and Rs 19.83 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 18% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 14.76 x for FY12E and 14.44 x for FY13E. Price to Book Value of the stock is expected to be at 3.14 x and 2.78 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 555 for Medium to Long term investment," says Firstcall research report.

Shares held by Mutual Funds/UTI

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment