Apollo Hospital’s share price surged over 3% in the early trading session on Friday, as the company reported 77% jump in net profit, reaching Rs 258 crore in the Q4 results year-on-year. The shares soared as much as 3.23%, reaching an intraday high of Rs 5,959.35 per share on the NSE.
The leading hospital chain reported a 77% growth in its consolidated net profit to Rs 258 crore for the fourth quarter ended March 2024. Revenue from operations during the January-March 2024 period increased by 15% year-on-year, reaching Rs 4,944 crore.
In the reporting March quarter, EBITDA stood at Rs 640 crore, compared to Rs 488 crore in the same quarter a year earlier. The EBITDA for the healthcare business increased by 11% to Rs 593 crore, with margins at 23.1% in the reporting period.
However, after incurring costs of Rs 151 crore by Apollo 24*7 for the quarter (including a Rs 106 million non-cash ESOP charge), the healthcare business reported a revenue of Rs 2,563 crore, showing a growth of 17% year-on-year from Rs 2,195 crore in Q4FY23.
Brokerages on Apollo Hospitals
Prabhudas Lilladhar on Apollo Hospitals
Prabhudas Lilladher maintains a “Buy” rating on Apollo Hospitals with a target price of Rs. 7,050 per share. Prabhudas Lilladher’s estimates by $0.8-0.9 billion, the likely merger of Keimed with AHL is seen as a positive step that removes the overhang of any leakage.
According to a report by Prabhudas Lilladher on Apollo Hospitals, Apollo Hospitals Enterprise’s 100% subsidiary, Apollo Health, has entered into an agreement to raise equity capital of Rs. 24.75 billion ($300 million) from Advent International (Advent) for a 16.8% stake.
Additionally, Apollo Health has proposed the integration of the promoter group entity, Keimed Pvt Ltd (Keimed), into Apollo Health, in a phased manner. This move aims to create a leading integrated pharmacy distribution business complemented by a fast-growing omni-channel digital health business.
Morgan Stanley on Apollo Hospitals
According to a report by Morgan Stanley on Apollo Hospitals, the firm maintains an “Overweight” rating on the stock with a target price of Rs. 7,181.
Apollo Hospitals reported a 15% year-on-year increase in consolidated revenue for the fourth quarter, driven by strong performances in its healthcare services, Apollo HealthCo, and AHLL divisions.
The consolidated EBITDA, after accounting for the costs associated with the 24×7 services, stood at Rs. 640 crore, aligning with Morgan Stanley’s estimates. As of March 2024, the company reported a consolidated net debt of Rs. 15,000 crore.
(Disclaimer: Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
