Buy Apollo Hospitals Enterprise, target price Rs 5350: Axis Securities

Axis Securities has buy call on Apollo Hospitals Enterprise with a target price of Rs 5350. The current market price of Apollo Hospitals Enterprise Ltd. is Rs 4722.15. Time period given by analyst is 3-4 weeks when Apollo Hospitals stock price can reach defined target. Axis Securities recommended to keep stop loss at Rs 4445.

Apollo Hospitals Enterprise, incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 67854.86 Crore) operating in Hospitals & Allied Services sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 4273.64 Crore, up 12.12 % from last quarter Total Income of Rs 3811.66 Crore and up 14.80 % from last year same quarter Total Income of Rs 3722.70 Crore. Company has reported net profit after tax of Rs 226.00 Crore in latest quarter.

The company’s top management includes Dr.Prathap C Reddy, Dr.Murali Doraiswamy, Mrs.V Kavitha Dutt, Dr.Som Mittal, Mr.Vinayak Chatterjee, Mr.M B N Rao, Mrs.Sangita Reddy, Mrs.Suneeta Reddy, Mrs.Shobana Kamineni, Mrs.Preetha Reddy, Mrs.Rama Bijapurkar. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
On the weekly time frame the stock has decisively broken out above the Downward Sloping Trendline. This breakout is accompanied with an increase in volume confirming participation at breakout level. Furthermore, the stock is well placed above 20, 50, 100and 200 key averages indicating positive momentum.

Promoter/FII Holdings
Promoters held 58.66 per cent stake in the company as of 30-Sep-2022, while FIIs owned 48.48 per cent, DIIs 30.44 per cent.