Apollo Hospitals Enterprise Ltd

December 20, 2017 . Equities Desk

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.

Research Report – Apollo Hospitals Enterprise Ltd.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.