Buy Apollo Hospitals Enterprise Ltd For Target Rs.6,978 - Choice Broking
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
* Robust Growth in Healthcare Services:
In the healthcare services sector, the reported revenue reached INR 24,635mn, reflecting a 12% YoY growth, driven by a 7.7% volume growth (excluding the institutional segment). The total number of operating beds across all networks, excluding AHLL and managed beds, was 7,911. Overall hospital occupancy increased to 65%, compared to 64% in the same period the previous year, supported by a robust increase in patient flows. EBITDA stood at INR 5,860 million, indicating an 8% YoY growth. Notably, self-pay and insurance revenue experienced a 13% YoY growth
* AHLL and Diagnostics Shine with Double-Digit Increases:
Apollo Health and Lifestyle Limited (AHLL) reported an 8% YoY revenue growth. Diagnostics exhibited substantial growth with a 19% YoY increase in revenue and an impressive 28% rise in per day footfalls. In Specialty Care, footfalls per day rose by 32% YoY in fertility and 10% in Cradle. Primary care also experienced growth, with a 16% YoY increase in footfalls per day in Dialysis. The company boasts a network of 2041 collection centers in diagnostics
* Digital Health and Pharmacy Distribution:
: In the digital health sector, Apollo's Apollo 24/7 app boasts ~31 million registrations, featuring a network of around 6,776 doctors and catering to ~6.2 lakh daily active users. The GMV of Apollo 24/7 reached Rs 6,579mn in Q3FY24, reflecting a substantial 21% growth over Q3FY23. Notably, Pharma AOV experienced an 8% increase, and the transacting user base grew by 18%. Offline pharmacy distribution witnessed a significant addition of 119 net new stores, bringing the total to 5,790 stores. The overall Healthco segment reported a noteworthy 17% YoY revenue growth, marking a positive EBITDA compared to loss in previous year, attributed to cost optimization and operational revenue growth from pharmacy distribution.
Outlook & Valuation:
The positive outlook on Apollo Hospitals Enterprise Limited (AHEL) is upheld based on several factors, including an aggressive store expansion plan, a comprehensive presence in the healthcare delivery chain, ongoing cost optimization measures, and an increase in occupancy levels. However, adjustments to margin expectations have been made, considering a longer-than-expected timeline for the improvement in operations for healthcare and diagnostic centers. The stock is va
For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer
SEBI Registration no.: INZ 000160131
