Apollo Hospitals gives multibagger returns in last one year on growth in pharmacy business, vaccination revenue
- Shares of Apollo Hospitals have surged 178% in the last one year and 103% so far in 2021.
- The healthcare company reported a net profit of ₹489 crore in the June quarter as against a loss of ₹208 crore last year.
- Analysts remain positive on the stock and believe the company will continue to witness healthy growth verticals.
AdvertisementShares of Apollo Hospitals have more than doubled in the last one year as the company has delivered strong financial performance.
The Chennai-based healthcare company is known for its chains of hospitals across the country.
The company reported a June quarter net profit of ₹489 crore on Friday as against loss of ₹208 crore last year. The stock has gained 16% since Monday.
A report by HDFC Securities says that the company has seen robust growth across business segments. “Despite COVID, the core hospital business posted a strong trend and it is likely to witness healthy growth...Its diagnostics business continues to see steady ramp-up and it is on track to achieve ₹5 billion revenue by FY23,” said the broking firm while maintaining ‘ADD’ rating on the company’s stock.
Analysts at ICICIdirect stated that the company’s performance was better than estimates led by strong recovery in occupancies along with average revenue per occupied bed (ARPOB), stockpiling by pharmacy customers during the second COVID-19 wave and incremental revenue from vaccination.
“We remain positive on Apollo Hopitals’s long-term outlook considering its strong brand and pan-India presence in the hospital segment, margin expansion potential and aggressive focus on creating digital network for pharmacy, doctor consultation, clinics and diagnostics,” said the report by ICICIdirect while retaining a ‘ADD’ rating on the stock.
Also, the company has delivered one of the highest returns to investors among its peers. The market capitalisation of the company doubled with the rise in its share price and stood at ₹70,747 crore as of August 17.
|Largest private healthcare service providers in India||Stock returns in last 1 year|
|Max Healthcare Institute||205%|
|Apollo Hospitals Enterprise||188%|
|Healthcare Global Enterprises||81%|
|Aster DM Healthcare||36%|
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