Motilal Oswal has given Buy recommendation for Apollo Hospitals recommended buy rating on the stock with a target price of Rs 5900 in its research rep with a target price of Rs. 5900 in its research report issued on Dec 21, 2021
Motilal Oswal’s research report on Apollo Hospitals
Apollo Healthcare Enterprises Limited (AHEL) has become a premier name in the Indian healthcare segment on the back of its centres of excellence across its 30 mature hospitals. Its 13 new hospitals are now nearing maturity, contributing to its growth and profitability. At the same time, AHEL is rapidly strengthening its adjacencies in healthcare services through the Apollo 24|7 platform, which has an unpatrolled reach and turnaround time, powered by its expansive network of 4,300 retail pharmacy stores. We expect its omni-channel differentiated factor to be the preferred mode for online pharmacy going forward, enabling AHEL to garner a ~14% market share in e-pharmacy over the next five years. Additionally, the improving profitability and expansion of Apollo Health And Lifestyle Limited (AHLL) will act as another growth lever, with much promise of growth in this highly efficient business in the future.
Outlook
Considering the multiple growth levers in place to drive its business, we expect AHEL’s revenue to grow at CAGR of 16% and earnings to grow at CAGR of 30% over FY22-24 to INR192b/INR16b. We initiate coverage on AHEL with an SOTP-based target price of INR5,900 and a Buy rating.