Buy Apollo Hospitals Enterprise, target price Rs 5222: ICICI Securities

ICICI Securities has buy call on Apollo Hospitals Enterprise with a target price of Rs 5222. The current market price of Apollo Hospitals Enterprise Ltd. is Rs 4627.9. Time period given by analyst is one year when Apollo Hospitals Enterprise Ltd. price can reach defined target.

Apollo Hospitals Enterprise Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 64458.66 Crore) operating in Hospitals & Allied Services sector.

Apollo Hospitals Enterprise Ltd. key Products/Revenue Segments include Pharmaceuticals, HealthCare Services and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 3656.08 Crore, down -1.79 % from last quarter Total Income of Rs 3722.70 Crore and up 32.21 % from last year same quarter Total Income of Rs 2765.34 Crore. Company reported net profit after tax of Rs 237.29 Crore in latest quarter.

Investment Rationale
Apollo Hospitals Enterprise’s (AHEL) Q3FY22 performance was better than estimate on margin front mainly led by consistent improvement in ARPOB and ALSO. Margin improved by 200bps YoY to 16.1% vs estimated 14.3%. Overall revenue grew 31.9% YoY to Rs36.4bn (I-Sec: Rs36.6bn). The brokerage remains positive on AHEL’s long-term outlook considering its strong brand and pan-India presence in hospital segment, margin expansion potential and aggressive focus on creating digital network for pharmacy, doctor consultation, clinics and diagnostics.

Promoter/FII Holdings
Promoters held 29.33 per cent stake in the company as of 31-Dec-2021, while FIIs owned 52.41 per cent, DIIs 12.17 per cent.