Apollo Hospitals Enterprise Ltd. share price target

Apollo Healthcare Enterprise (AHEL) delivered a better-than-expected 3QFY22 performance, led by strong traction across segments. 3QFY22 saw minimal impact of COVID-related business, both in treatment as well as vaccination. It has been implementing capex/opex in the Hospital/Pharmacy segment online-offline/Apollo Health Lifestyle (AHLL) to profit from the opportunity arising over the next four-to-five years. We maintain our estimates and value AHEL on a SoTP basis (value Hospital/ Pharmacy/AHLL at 22x/35x/30x EV/EBITDA and Apollo 24/7 at 4x EV/sales...

During Q1FY22, standalone revenue continued onto its growth trajectory rising 24.1% QoQ owing to higher sales achieved via its digital platform and partly aided by rising participation by the public in...

While complete business normalisation in the healthcare segment is expected to be more pronounced from Q2FY22 onwards, Apollo's management has already charted a way to reduce costs in the short-term. We remain positive on the company as besides strong healthcare pedigree and asset base the company is on course to integrate all entities digitally to leverage its brand and physical presence. We maintain BUY with a revised TP of | 3870 (earlier | 3170) on SOTP basis by valuing healthcare business (existing hospitals & JV) at 20x FY23E EV/EBITDA, healthcare (new...

Apollo Hospitals is widely recognised as the pioneer of private healthcare in India.

Rise in occupancy rate and patient footfalls Apollo Hospitals Enterprise Ltd operates the largest hospital network and pharmacy chain in India. The company owns around 71 Hospitals and...

While complete business normalisation in the healthcare segment is expected to be more pronounced from H1CY21 onwards, Apollo's management has already charted a way to reduce costs in the short-term. On the other hand, structural cost saving initiatives are also under way to reduce costs by 12-15% in the long-term. We remain positive on the company as besides strong healthcare pedigree and asset base the company owns one of the best pharmacy models in the world that provides an overall cushion in difficult times. We upgrade from HOLD to BUY at a...

On the technical front, APOLLOHOSP has been making higher highs and higher lows on the daily charts and is currently placed above the medium-term EMAs in the daily frame. In the recent past, after clocking a low of 1986 levels, the stock has witnessed a bounce and rallied to the current levels. At the current juncture, the stock has formed a base of around 1985 levels on the lower side and is all set to move higher.

Healthcare expansion moderates; focus on asset sweating Rapid expansion and maturity of older hospitals has kept overall growth tempo at 12-14% per annum. After a prolonged capex cycle, especially in FY14-18, Apollo is focusing on profitability and return ratios with capex moderation. This has reflected in a marked improvement in both EBITDA margins and RoCE. The new hospitals, ventures are turning profitable ahead of schedule on the back of a judicious case mix besides better occupancy and other matrix. We expect healthcare sales to grow at 9.5% FY20-23E...

Healthcare expansion moderates; focus on asset sweating Notwithstanding short-term fluctuations stemming from Covid, rapid expansion, maturity of older hospitals have kept overall growth tempo at 1214% per annum. After an intense capex cycle, especially in FY14-18, the company is focusing on profitability, return ratios with calculated capex moderation. This reflected in a marked improvement in both EBITDA margins, RoCE. The new hospitals and ventures are turning profitable ahead of schedule on the back of a judicious case mix besides better occupancy and other matrix. We expect healthcare sales to grow at ~8% CAGR in FY2022E to | 7544 crore mainly due to growth at new hospitals, AHLL....