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    Apollo Hospitals hits 52-week high; stock jumps 10% on strong Q3 results: Should you buy now?

    Apollo Hospitals hits 52-week high; stock jumps 10% on strong Q3 results: Should you buy now?

    Apollo Hospitals hits 52-week high; stock jumps 10% on strong Q3 results: Should you buy now?
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    By Pranati Deva   IST (Published)

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    The stock rose as much as 9.7 percent to its 52-week high of Rs 3,016.25 per share on the BSE.

    Shares of Apollo Hospitals surged nearly 10 percent to hit its 52-week high on Monday after the company reported better than expected December quarter earnings. It posted a 49.14 percent rise in consolidated net profit at Rs 134.16 crore in Q3 mainly on account of a reduction in expenses.
    The company had logged a net profit of Rs 89.95 crore in the year-ago period.
    The stock rose as much as 9.7 percent to its 52-week high of Rs 3,016.25 per share on the BSE.
    Revenue from operations, meanwhile, fell a bit to Rs 2,759.84 crore as against Rs 2,911.74 crore for the same period a year ago, it added.
    Total expenses were down to Rs 2,595.54 crore versus Rs 2,776.46 crore in the year-ago period.
    Brokerages were also very bullish on the stock post the results on strong margin lifting the sentiment further. JPMorgan, Goldman Sachs and Credit Suisse were all positive on the stock.
    JP Morgan was overweight on the stock with a target at Rs 3,120 per share. It said that Q3 was another quarter of margin beat as the focus remained on non-COVID recovery and digital space.
    Organic and inorganic investments will strengthen the firm's presence in the East and North India, it noted, adding that the firm's focus is on more than doubling its diagnostic revenue.
    Credit Suisse, on the other hand, had an 'outperform' rating on the stock with a target ta Rs 3,160 per share. It said that the Q3 beat was due to a strong margin in hospitals. It also lifted the firm's FY21 EPS estimate to Rs 6.1 from Rs 1.9 earlier.
    Goldman Sachs retained a 'buy' call on the stock with a target at Rs 3,020 per share. It raised the stock's FY21023 EBITDA estimates by up to 7 percent.
    "The third quarter of the year saw robust growth as we increased focus on non-COVID-19 patients, especially non communicable diseases (NCDs), which pose a substantial risk to the health of the people," Apollo Hospitals Group Chairman Prathap C Reddy said post the earnings.
    The company recently also concluded qualified institutional placement (QIP) for Rs 1,170 crore at Rs 2,511 per share, and the issue was over-subscribed 12.5 times.
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