Hold Apollo Hospitals; target of Rs 1557: Karvy

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26 Aug, 2025 12:21

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Karvy's report on Apollo HospitalsThe Apollo Hospitals Group is the pioneer of integrated healthcare delivery in India. It was founded by Dr. Prathap C. Reddy in 1979 and the first hospital was launched at Chennai in 1983. Now, as Asia’s largest and most trusted healthcare group, its presence includes around 8,985 beds across 64 hospitals, 2,475 pharmacies, health insurance services, global projects consultancy, academic institutions and a Research Foundation with a focus on global clinical trials, epidemiological studies, stem-cell and genetic research. The company is headquartered in Chennai and has 12 direct subsidiaries, five step down subsidiaries, seven joint ventures and three associate companies. Apollo has large hospital clusters in Chennai and Hyderabad; and has established hospitals in Delhi, Bengaluru, Kolkata, Ahmedabad, Pune, Bhubaneshwar, Madurai and Mysore. International operations comprise operating and management contracts for hospitals in Bangladesh, Kuwait and Africa as well as telemedicine units in Burma and East & West Africa.AHEL is currently trading with an Enterprise Value of 24.9x, 21.3x and 17.9x of its EBITDA for FY16E, FY17E and FY18E respectively. We value AHEL on the basis of SOTP valuation with EV/EBITDA of 20x for healthcare services, 15x for pharmacy business and 5x for other businesses including Apollo-Munich insurance with “HOLD” rating having target price of Rs.1577 representing an upside of 10%.

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