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

The shares of Apollo Hospitals Enterprises rallied over 6 percent, hitting a 52-week high of Rs 4,334.45 apiece on the BSE Monday after the company reported its earnings for the first quarter of fiscal 2021.

The company posted a consolidated net profit of Rs 489 crore in the quarter ended June 2021 against a net loss of Rs 208 crore in the year-ago period.

The company's consolidated revenues in Q1FY22 rose to Rs 3,760 crore from Rs 2,171 crore, YoY.

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.