Buoyed by robust growth outlook, Apollo Hospitals stocks gain 2%

Apollo Hospitals Enterprise was among the top gainers on September 11 after it rallied more than 2 percent on September 11, buoyed by a robust growth outlook for the healthcare services provider.

UBS has a “buy” rating on Apollo Hospitals with a target price of Rs 6,050 a share.

“Data from the healthcare industry indicates that the occupancy trend is improving sequentially. We remain positive on Apollo’s core healthcare business and expect occupancy to improve to 65 percent in the second quarter versus 62 percent recorded in the April-June quarter,” the brokerage said.

At 12.45 pm, Apollo Hospitals Enterprise was quoting at Rs 5,096.55 on the National Stock Exchange, up Rs 111.40, or 2.23 percent, from the previous day.

The stock has a trailing P/E of 109.26x, making it the most expensive stock in absolute terms among its peers.

In the June quarter, the company reported a 16.38 percent year-on-year (YoY) increase in its revenue from operations at Rs 4,418 crore. Net profit was down 46.60 percent YoY to Rs 173 crore. The operating profit margins contracted by 100 basis points on year to 12 percent.

One basis point is one-hundredth of a percentage point.

Apollo Hospitals is engaged in the business of healthcare services, including operation of hospitals, clinics, and pharmacies. Moneycontrol