0

0

0

0

0

0

0

0

0

market | IST

Apollo Hospitals up140% this year; here’s what brokerages say

Mini

Apollo Hospitals has been one of the best performing hospitals stocks this year with a move of round 144 percent odd on a year-to-day basis. Compare this to the peers such as Max Healthcare which is up 165 percent but the likes of Fortis Healthcare, Narayana Health and HCG, where Apollo Hospitals has outperformed.

Apollo Hospitals has been one of the best performing hospitals stocks this year with a move of around 144 percent odd on a year-to-day basis. Compare this to the peers such as Max Healthcare which is up 165 percent but the likes of Fortis Healthcare, Narayana Health and HCG, where Apollo Hospitals has outperformed.
In fact it has gained over 20 percent just in the past three trading sessions post its Q2 numbers and has surpassed or is close to the top broker target prices where most of them were hiked post the Q2 numbers.
Valuation wise, it is one of the most expensive amongst the hospital space, and factoring in the recent run-up post the Q2 numbers it is trading at around 27 to 28 times EV to EBIT on an FY23 basis.
A couple of key triggers, Q2 numbers indicate that the core hospital business is returning to normal. In fact, the drying COVID revenue, according to analysts, is expected to be aided by a pickup in international patients.
The likes of Goldman Sachs and CLSA have raised their EBITDA estimates for the company on an FY22 and 24 basis.
The other big trigger is 'Apollo HealthCo', which is basically the digital arm which also includes the backend pharmacy business. The company is confident on achieving $2.5 billion revenue in FY25, customer targets of 100 million, and 2 strategic deals are probably expected in 2021 itself.
UBS has valued 'Apollo HealthCo' at around $4 billion and they have increased the target price recently to Rs 5,700 versus Rs 3,850 maintaining a buy.
Catch all the stock market live updates here.