Justtrade puts 'buy' on Apollo Hospitals Enterprise
Domestic research house Justtrade.in (Bajaj Capital Venture) has put a ‘buy’ on Apollo Hospitals Enterprise.
By ET Bureau |
Apollo Hospitals
cmp: Rs 444
target price: Rs 540
Domestic research house Justtrade.in (Bajaj Capital Venture) has put a ���buy��� on Apollo Hospitals Enterprise. The broking house believes that India is hugely underserviced with regard to healthcare services.
With Apollo���s plans to cater to not only the premium segment patients but also the middle class through its reach hospitals plan, it is all set to cover a bigger market and benefit from the prevailing levels of under-penetration.
Apollo has larger plans going forward, which will make it a fully-vertically integrated company in the healthcare segment, right from providing medical facilities to retail pharmacy to drug manufacturing.
It adds: ���Apollo is presently trading at a PE multiple of 24.4 based on EPS for the trailing 12 ending September quarter of 2008, Price to Book ratio of 2 on 2008 book value and Price to Sales ratio of 2 based on sales for the same period. But it adds that a capex of Rs 2000 crore will find to raise money in such a scenario.
cmp: Rs 444
target price: Rs 540
Domestic research house Justtrade.in (Bajaj Capital Venture) has put a ���buy��� on Apollo Hospitals Enterprise. The broking house believes that India is hugely underserviced with regard to healthcare services.
With Apollo���s plans to cater to not only the premium segment patients but also the middle class through its reach hospitals plan, it is all set to cover a bigger market and benefit from the prevailing levels of under-penetration.
Apollo has larger plans going forward, which will make it a fully-vertically integrated company in the healthcare segment, right from providing medical facilities to retail pharmacy to drug manufacturing.
It adds: ���Apollo is presently trading at a PE multiple of 24.4 based on EPS for the trailing 12 ending September quarter of 2008, Price to Book ratio of 2 on 2008 book value and Price to Sales ratio of 2 based on sales for the same period. But it adds that a capex of Rs 2000 crore will find to raise money in such a scenario.
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