Buy Apollo Hospital; target of Rs 945: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research is bullish on Apollo Hospital and has recommended buy rating on the stock with a target of Rs 945 in its November 19, 2012 research report.

“Apollo Hospitals Enterprise Limited (AHEL) was incorporated as a Public Limited Company in the year 1979. Promoted by Dr. Prathap C Reddy, it is the first group of hospitals that pioneered the concept of corporate healthcare delivery in India. AHEL today, is the leading private sector healthcare provider in Asia and owns and manages a network of specialty hospitals and clinics, a chain of Pharmacy retail outlets across the country, and provides Consultancy Services for commissioning and managing the Specialty Hospitals. Apollo Hospitals has also played a pioneering role in helping India become a center-of-excellence in global healthcare. The Apollo Hospitals group today includes over 8,500 beds across 54 hospitals in India and overseas, neighborhood diagnostic clinics, an extensive chain of Apollo Pharmacies, medical BPO and health insurance services and clinical research divisions that are working on the cutting edge of medical science.”

“Apollo Hospitals Group had become an integrated healthcare organization with owned and managed hospitals, diagnostic clinics, dispensing pharmacies and consultancy services. In addition, the group's service offerings include healthcare at the patient's doorstep, clinical & diagnostic services, medical business process outsourcing, third party administration services and health insurance. To enhance performance and service to customers, the company also makes available the services to support the business of healthcare; telemedicine services, education and training programmes & research services and a host of not- for- profit projects.”

“Apollo Hospitals Enterprise Ltd is India’s first and largest branded pharmacy network, with over 1,350 outlets in key locations, reported its financial results for the quarter ended 30th Sep, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability of the company. The company’s net profit jumps to Rs.832.40 million against Rs.557.60 million in the corresponding quarter ending of previous year, an increase of 49.28%. Revenue for the quarter increase 19.52% to Rs.8363.20 million from Rs.6997.50 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.5.98 a share during the quarter, registering 40.98% increase over previous year period. Profit before interest, depreciation and tax is Rs.1583.60 millions as against Rs.1267.00 millions in the corresponding period of the previous year.”

“At the current market price of Rs.844.00, the stock P/E ratio is at 38.85 x FY13E and 32.50 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.21.73 and Rs.25.97 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 24% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 19.94 x for 17.41 x respectively for FY13E and FY14E. Price to Book Value of the stock is expected to be at 4.36 x and 3.90 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 945 for medium to long term investment,” says Firstcall Research report.  

Non-Institutions holding more than 90% in Indian cos

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