Apollo Hospitals Q3 Results Review - Inline Ebitda; HealthCo Achieves Break-Even: Prabhudas Lilladher

Prabhudas Lilladher Report

Apollo Hospitals Enterprise Ltd. reported consolidated Ebitda of Rs 6.13 billion (up 21% YoY) in-line with our estimates. Adjusted for 24x7 losses and ESOP cost (~Rs 1.6 billion), Ebitda was at Rs 7.7 billion, up 9% YoY.

We believe Apollo Hospital has created a solid growth platform across segments and digital foraying has further made it a strong Omni channel play.

The company also has good presence in offline format, making it more of a formidable player than just pure play online company. Scale up in Apollo HealthCo has been on track with likely break even in Ebitda of digital business over next six-eight quarters.

Our FY25E and FY26E Ebitda broadly remain unchanged. Overall we estimate 16% Ebitda compound annual growth rate over FY24-26E (ex 24x7).

Maintain ‘Buy’ rating with revised target price of Rs 7,050/share (earlier Rs 6,000/share) as we roll forward.

We ascribe 25 times enterprise value/Ebitda multiple to hospital and offline pharmacy, assign one time sales to the 24/7 business.

Click on the attachment to read the full report:

DISCLAIMER

This 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.