Margin to gain traction
Apollo Hospitals Enterprise Ltd. (AHEL) is India’s largest private healthcare services provider with a network of 9,957 beds spread across the country.
Outlook and Valuation: We remain positive on the stock driven by higher occupancy rate leading to better operating leverage, break-even of Navi Mumbai hospital by FY19 and scope for margin expansion in both hospitals & pharmacy businesses. We project EBITDA/PAT to witness a CAGR of 22%/36% over FY17-20E. Hence, we maintain our ‘BUY’ rating on the stock with a revised TP of Rs. 1,327 based on a target multiple of 16x EV/EBITDA.
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.
Other articles you may like
Get FundsIndia’s articles delivered straight to your inbox!
Enter your email address to get:
- Mutual fund recommendations from experts
- Buy, hold or sell calls for stocks
- Investment tips and tricks
- All the latest news from Fundsindia.com