Prabhudas Lilladher has buy call on Apollo Hospitals Enterprise with a target price of Rs 5400. The current market price of is Rs 4542.5.
., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 64990.66 Crore) operating in Hospitals & Allied Services sector.
Apollo Hospitals Enterprise Ltd. key Products/Revenue Segments include HealthCare Services and Other Operating Revenue for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 4273.64 Crore, up 12.12 % from last quarter Total Income of Rs 3811.66 Crore and up 14.80 % from last year same quarter Total Income of Rs 3722.70 Crore. Company reported net profit after tax of Rs 226.00 Crore in latest quarter.
Investment Rationale
The brokerage believes APHS has created a solid growth platform across segments and digital foraying has further made it a strong Omni channel play. The company also has good presence in offline format, making it more of a formidable player than just pure play online companies. Though stake sale in Apollo HealthCo has been delayed, scale up in business is on track. It ascribes 22x EV/EBITDA multiple to hospital segment, 25x EV/EBITDA to offline pharmacy and 20x EV/EBITDA to AHLL. Overall it estimates 19% EBITDA CAGR over FY22-25E an assign zero value to the 24/7 business. Recommend ‘BUY’ at SOTP based TP of Rs5,400 (Rs5,000 earlier) as it rolls forward.
Promoter/FII Holdings
Promoters held 58.66 per cent stake in the company as of 30-Sep-2022, while FIIs owned 48.48 per cent, DIIs 30.44 per cent.
., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 64990.66 Crore) operating in Hospitals & Allied Services sector.
Apollo Hospitals Enterprise Ltd. key Products/Revenue Segments include HealthCare Services and Other Operating Revenue for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 4273.64 Crore, up 12.12 % from last quarter Total Income of Rs 3811.66 Crore and up 14.80 % from last year same quarter Total Income of Rs 3722.70 Crore. Company reported net profit after tax of Rs 226.00 Crore in latest quarter.
Investment Rationale
The brokerage believes APHS has created a solid growth platform across segments and digital foraying has further made it a strong Omni channel play. The company also has good presence in offline format, making it more of a formidable player than just pure play online companies. Though stake sale in Apollo HealthCo has been delayed, scale up in business is on track. It ascribes 22x EV/EBITDA multiple to hospital segment, 25x EV/EBITDA to offline pharmacy and 20x EV/EBITDA to AHLL. Overall it estimates 19% EBITDA CAGR over FY22-25E an assign zero value to the 24/7 business. Recommend ‘BUY’ at SOTP based TP of Rs5,400 (Rs5,000 earlier) as it rolls forward.
Promoter/FII Holdings
Promoters held 58.66 per cent stake in the company as of 30-Sep-2022, while FIIs owned 48.48 per cent, DIIs 30.44 per cent.
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