Why Is Apollo Hospitals Stock Poised For Re-Rating? Read PL Capital Report

At current market price, Apollo Hospital Enterprises is trading at 22x EV/Ebitda on Sept 2027E adjusted for minority and rental. Ascribing 27x EV/Ebitda to HealthCo, Apollo Hospital plus Diagnostics business is available at ~20x EV/Ebitda on Sept 2027E, which is at 15-30% discount to peers..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.Apollo Hospitals Enterprise Ltd.’s stock has underperformed since FY24 versus its peers (Max Healthcare, KIMS, Fortis). We believe underperformance was due to relatively moderate growth in the Hospitals segment, elevated losses from Apollo 24×7 business and stake sale of Apollo HealthCo to Advent in April 2024 at below market expectations. As part of the ongoing process, these concerns are addressed via 3,577 bed additions over the next three-four years, reducing losses in 24×7 and likely breakeven by H1 CY26, and listing of HealthCo by FY27 end to unlock value. .Overall, we estimate 26% Ebitda CAGR over FY25-28E. At CMP, Apollo Hospital Enterprises Ltd. is trading at 22x EV/Ebitda on Sept 2027E adjusted for minority and rental. Ascribing 27x EV/Ebitda to HealthCo, Apollo Hospital plus Diagnostics business is available at ~20x EV/Ebitda on Sept 2027E, which is at 15-30% discount to peers. We ascribe 27x EV/Ebitda multiple to Hospitals and HealthCo based on Sept 2027E. We recommend ‘Buy’ rating with target price of Rs 9,300/share..Click on the attachment to read the full report:.'Buy' ICICI Bank Shares Maintains Motilal Oswal, Sees Upto 20% Potential Upside — Check Target Price .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Why Is Apollo Hospitals Stock Poised For Re-Rating? Read PL Capital Report

PL Capital is positive on Apollo Hospitals' stock, hence recommends 'Buy' rating.

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