Apollo Hospitals shares hit 52-week high after Q1 results; brokerage raise target

Global brokerage firm CLSA upgraded the stock to Outperform

Brokerage CLSA upgraded the rating on the stock to Outperform from Sell and raised the target price to Rs 4,420 per share from Rs 2,900 earlier.

Apollo Hospitals’ Ebitda and net profit were ahead of estimates, boosted by the contribution from COVID-19-linked services like vaccines and diagnostic tests. Brownfield expansion plans for hospitals are underway and value unlocking for the healthcare technology platform, Apollo HealthCo (AHL), is expected in two months, CLSA said.

It raised FY22-24CL Ebitda 8 percent-13 percent and lifted EV-Ebitda valuation for AHL based on the stake sale traction following a recent peer transaction.

: Growth strong even excluding COVID-19; online pharmacy business growing: Apollo Hospitals

Meanwhile, Credit Suisse has an outperform call on the stock and has raised the target to Rs 4,800 from Rs 3,850 a share.

The brokerage is of the view that the induction of strategic and financial partners should increase the pace of customer addition. Scaling up of generic medicine can add 40 percent to offline pharmacy EBITDA, while the pace of diagnostic expansion is strong, it said.

At 2:15 pm, the shares of Apollo Hospitals Enterprises were trading 5.77 percent higher at Rs 4,294.45 apiece on the BSE.