Apollo Hospital - Q3 FY21 Result Update - YES Securities

(Rating: SELL, TP: Rs 1,300, Downside: 53%)

- New initiatives like ProHealth, Apollo 24/7 and diagnostics can account for meaningful share of incremental revenues and EBIDTA

- Hospitals business is firmly on path towards recovery; reiteration of no greenfield capex is a positive but capex spend on bolt on acquisitions need to be watched for quantum of capital allocated

- Focus on value unlocking in back end pharmacy business, combined with potential scalability of new initiatives (relatively capital light compared to hospitals) have led to stock outperformance as against our stance and expectation

- We would evaluate the potential value accretion from ProHealth and 24/7 looking at comparables and revisit our estimates in a separate update. Albeit, sell call stays on the stock.

Shares of APOLLO HOSPITALS ENTERPRISE LTD. was last trading in BSE at Rs.3091 as compared to the previous close of Rs. 2747.35. The total number of shares traded during the day was 144684 in over 10991 trades.

The stock hit an intraday high of Rs. 3125 and intraday low of 2761.05. The net turnover during the day was Rs. 431290666.

Source : Equity Bulls

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