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This large-cap healthcare stock could further rise 19% after giving 55% return in a year

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The large-cap healthcare services stock has been a genuine multibagger for investors with the 10-year return well over 400 percent.

This large-cap healthcare stock could further rise 19% after giving 55% return in a year
IDFC Securities has raised its long-term price target on Apollo Hospitals Enterprises Ltd by over 19 percent to Rs 2,034 per share on the back of strong quarterly results and growth outlook. Calling the large-cap stock as one of its top picks in healthcare services, the brokerage has maintained 'outperform' rating on Apollo Hospitals.
Apollo Hospitals shares hit a fresh 52-week high in trade on Wednesday. Shares of Apollo Hospitals quoted at Rs 1,762.90 on the NSE at 2.29 pm, down 0.68 percent, after opening at 1,774.90 apiece. The day's high came in at Rs 1,792.60 per share.
The large-cap healthcare services stock has been a genuine multibagger for investors with the 10-year return well over 400 percent. The one-year return on the stock is also over 55 percent compared to Sensex return of around 15 percent.
"With its leadership position, national footprint and a multi-pronged healthcare delivery model, Apollo is a strong EM healthcare model. Apollo's recently concluded big-ticket expansion has created a strong growth platform... Maintain Outperformer with a SOTP price target of Rs 2034," analysts at IDFC Securities covering the stock said in a report on Sunday.
Apollo Hospitals reported an 80.36 percent rise in consolidated net profit at Rs 89.96 crore for the quarter ended December on account of robust performance across verticals. The company had posted a net profit of Rs 49.87 crore in the corresponding period of the previous fiscal, Apollo Hospitals Enterprise said in a filing to the BSE.
Consolidated revenue from operations stood at Rs 2,911.74 crore for the quarter under consideration. It was at Rs 2,495.04 crore for the same period a year ago.
Novel technology
"In addition to arming ourselves with newer offerings and treatment technologies, the resilience of our service model that offers comprehensive care across multiple centres and formats is enabling us to maintain a focused trajectory of growth amidst a dynamic and fluid operating environment," Apollo Hospitals Chairman Prathap C Reddy said.
As on December 31, 2019, Apollo Hospitals had over 7,470 operating beds across the network (excluding AHLL and managed beds), out of which 14 were new hospitals with 1,990 operating beds.
The new hospitals are expected to see an increase in volumes and utilisation going forward, the company said. The total store network of standalone pharmacies as of December 31, 2019 stood at 3,700 operational stores, it added.
Apollo Health & Lifestyle Ltd (AHLL), a wholly owned subsidiary which houses the retail healthcare business of Apollo Hospitals, had 917 centres in total as of December 31, 2019.
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