Buy Apollo Hospitals Enterprise, target price Rs 5580 : Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Apollo Hospitals Enterprise with a target price of Rs 5580. The current market price of Apollo Hospitals Enterprise is Rs 4415.55.

Apollo Hospitals Enterprise, incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 63435.63 Crore) operating in Hospitals & Allied Services sector.

Apollo Hospitals Enterprise key Products/Revenue Segments include HealthCare Services and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 4298.94 Crore, up .59 % from last quarter Total Income of Rs 4273.64 Crore and up 17.58 % from last year same quarter Total Income of Rs 3656.08 Crore. Company has reported net profit after tax of Rs 183.85 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 31-03-2023, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The hospital has a better outlook on profitability over the next two years compared to peers. However, it is currently trading near the industry average of 17x EV/EBITDA onFY25E basis.

Promoter/FII Holdings
Promoters held 29.33 per cent stake in the company as of 31-Mar-2023, while FIIs owned 46.96 per cent, DIIs 17.65 per cent.