Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Apollo Hospitals; target of Rs 3870: ICICI Direct

ICICI Direct is Apollo Hospitals recommended buy rating on the stock with a target price of Rs 3870 in its research report dated June 25, 2021.

June 28, 2021 / 03:07 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Apollo Hospitals


Apollo Hospital's Q4FY21 revenues came in at Rs 2868 crore (I-direct estimate: Rs 2857.7 crore). They are not comparable YoY due to restructuring of the retail pharmacy business to pharmacy distribution (post demerger). On the other hand, the hospital segment grew 10.1% YoY to Rs 1443 crore vs. I-direct estimate of Rs 1490 crore. Pharmacy distribution segment revenues came in at Rs 1118.7 crore. EBITDA margins improved 135 bps YoY to 14.4% mainly due to lower staff cost, which likely stems from restructuring of retail pharmacy to pharmacy distribution. Subsequently, EBITDA grew 8.4% YoY to Rs 411.8 crore). Adjusted PAT for the quarter grew 106.3% YoY, 15.3% QoQ to Rs 167.9 crore. Delta vis-à-vis EBITDA was mainly due to lower depreciation, interest cost and higher other income.



Outlook


We maintain BUY with a revised TP of Rs 3870 (earlier Rs 3170) on SOTP basis by valuing healthcare business (existing hospitals & JV) at 20x FY23E EV/EBITDA, healthcare (new hospitals), pharmacy both at 3x, AHLL at 5x FY23E EV/sales, respectively.

Close

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Jun 28, 2021 03:07 pm
Sections
ISO 27001 - BSI Assurance Mark