Apollo Hospitals, Narayana shares scale 52-week high as Q2 results boost sentiment
Apollo Hospitals Enterprise Ltd, Narayana Hrudayalaya Ltd share price scaled 52-week highs on Friday while Fortis Healthcare, Max Healthcare Institute Limited, Global Health ltd ( Medanta) are trading close to their highs seen recently. The investor confidence remains strong led by improving occupancy for Hospitals, rising average revenues per operating bed (ARPOB), rising non Covid treatment volumes etc that are helping lift their financial performance as was visible in Q2 results. Analysts at Jefferies India Pvt Ltd in their result review report said that in 2QFY24, 3 of our 4 coverage hospitals delivered beats to their estimates while one was in line.
The quarter saw healthy ARPOB as well as volume growth. Hospital divisions for all of their coverage universe clocked double-digit sales and EBITDA growth. Ebitda stands for Earnings before interest tax depreciation and amortisation.
Payor mix continued to get boost from higher international revenue share while case mix got Oncology boost. They continue to like the sector and have Buy ratings on all four names: Apollo, Medanta, Max and Fortis. Also Read- JSW Infra stock soars 8.4% to all time high on ₹4,119 crore order win The volume growth reported during Q2 was strong in the back of better occupancy, and further aided by a rise in international patients.
The rise in occupancy for new Hospitals is also aiding overall ARPOB growth for many. The ARPOB have seen good double-digit growth with the exception of Global Healthcare or Medanta that saw the new Hospital In Patna pulling down overall average ARPOB growth. In 2QFY24, Fortis, Apollo and Max Healthcare registered double-digit YoY ARPOB growth while Medanta ARPOB increased in mid-single digit.
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