Geojit has given Buy recommendation for Apollo Hospitals Enterprise with a target price of Rs. 5416 in its research report issued on Feb 16, 2022

Geojit’s research report on Apollo Hospitals Enterprise

During Q3FY22, standalone revenue continued its growth trajectory, rising 20.7% YoY owing to growth achieved as a result of systemic improvements in diagnostics. Elective and primary care footfall overall indicating that revenue was high and unaffected by lower vaccine revenue.Inpatient volume up 28% YoY. EBITDA rose 31.8% YoY to Rs. 424cr (-3.3% QoQ), as EBITDA margin expanded 120bps YoY to 14.8%. Resultantly, Adj. PAT grew 65.1% YoY to Rs. 175cr (-5.6% QoQ) further aided by lower finance costs. Given the private label growth, digitally transformed delivery model, cost cutting measures, upscaled infrastructure, third party delivery tie-up (Amazon) and quick adaptability to COVID needs, the company is expected to continue its growth momentum.

Outlook

Hence, we upgrade our rating on the stock to BUY with a rolled forward TP of Rs. 5,416 based on SOTP valuation.

More Info

At 15:25 hrs Apollo Hospitals Enterprises was quoting at Rs 4,617.60, up Rs 39.40, or 0.86 percent.

It has touched an intraday high of Rs 4,734.60 and an intraday low of Rs 4,593.00.

It was trading with volumes of 40,165 shares, compared to its thirty day average of 34,046 shares, an increase of 17.97 percent.

In the previous trading session, the share closed up 3.40 percent or Rs 150.75 at Rs 4,578.20.

The share touched its 52-week high Rs 5,930.70 and 52-week low Rs 2,789.00 on 26 November, 2021 and 25 March, 2021, respectively.

Currently, it is trading 22.14 percent below its 52-week high and 65.56 percent above its 52-week low.

Market capitalisation stands at Rs 66,394.00 crore.

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