Apollo Hospitals shares rise 4% after reporting 83% YoY jump in Q1 PAT. Should you buy?
Apollo Hospitals on Wednesday rose 4.2% to its day’s high of Rs 6864.95 on BSE after the company on Tuesday reported a net profit of Rs 305 crore for the first quarter ended June 2024 against Rs 167 crore in the year-ago period.
The company’s revenue from operations in the reporting period increased 15% year-on-year (YoY) to Rs 5,086 crore as against Rs 4,418 crore in the last year quarter.
Segment-wise, revenue for the healthcare services grew 15% YoY to Rs 2,637 crore and EBITDA for the business also rose 15% to Rs 622 crore. PAT for the segment came in at Rs 328 crore, which is a growth of 24% YoY.
Below is a brief note from various brokerage firms on the Q1 update:
JP Morgan: Overweight| Target price: Rs 6,800
JP Morgan maintained its overweight rating on the stock with a target price of Rs 6800.
Q1 was in line with estimates. A strong uptick in occupancy was seen.
Weak ARPOB growth, Apollo 24/7's GMV grew moderate and margin declines were seen as key negatives while healthy revenue growth across segments and a strong improvement in occupancy were key positives.
UBS: Buy| Target price: Rs 7,500
UBS has maintained a buy rating on Apollo Hospitals with a target price of Rs 7500.
The global brokerage firm felt that Q1FY25 was a well rounded performance with revenue and EBITDA growing at 15% and 33% respectively as the healthcare revenue grew due to improved occupancy and outpatient volume.
Citi: Buy| Target price: RS 7,670
Citi has maintained a buy rating on the stock with a target price of Rs 7670.
