Buy Apollo Hospitals Enterprise; target of Rs 7059: Geojit Financial Services

Geojit Financial Services research report on Apollo Hospitals Enterprise

Apollo Hospitals Enterprise Ltd. (Apollo) operates the largest network of about 73 hospitals and more than 6,000 pharmacies in India. In Q4FY24, consolidated revenue increased 15.1% YoY to Rs.4,972cr, driven by healthy performance across all segments. EBITDA surged 32.5% YoY to Rs. 669cr, with margins reaching to 13.4% (+170bps YoY) owing to higher topline and cost optimisation efforts. Apollo reported strong Q4 results with higher sales and improved margins. The company has been actively expanding its operations by adding new beds and hospitals, increasing surgical volumes, and broadening its test menu. These efforts are expected to boost the company's earnings potential in the future.

Outlook

Therefore, we upgrade our rating to BUY from HOLD on the stock with a revised target price of Rs. 7,059 based on a sum-of-the-parts (SOTP) valuation.