Apollo Hospital share price hits fresh high amid strong Q1 revenue, stock up near 7% - check target price here

On the back of strong first-quarter revenue, the shares of Apollo Hospitals Enterprises hit a new life high of Rs 4,328.3 per share after surging for almost 7 per cent on the BSE intraday trade Monday.

The hospital chain reported a strong 31 per cent quarter on quarter (QoQ) growth in consolidated revenue at Rs 3,760 crore in the June-ended quarter of the financial year 2021-22, while it grew over 73 per cent from Rs 2,172 crore on a year-on-year (YoY) basis.

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The revenue growth was mostly driven by the hospital segment, which grew 26.2 per cent QoQ to Rs 1,941 crore, while from the pharmacy distribution segment grew 35 per cent QoQ to Rs 1,512 crore.

In its exchange filing, the mid-cap hospital chain said that the consolidated profit stood at Rs 489 crore in the first quarter of FY22 as compared to a net loss of Rs 208 crore in the previous quarter.

During the quarter, the occupancy across the group was at 5,108 beds (67 per cent occupancy) as compared to 2,742 beds (38 per cent occupancy) in the same period a year ago, the company said.

It further added in its results filing that the average revenue per occupied bed or ARPOB (excluding vaccination) was at Rs 41,102 compared with Rs 38,065, registering a growth of 8 per cent in Q1FY22 as compared to the previous year.

“Induction of strategic and financial partners should increase the pace of customer addition. Scale-up of generic medicine can add 40 per cent to offline pharmacy EBITDA,” says Credit Suisse in its note while maintaining an Outperform call on Apollo Hospitals, and raised target to Rs 4,800 a share.

Similarly, CLSA also upgrades Apollo Hospitals to Outperform from a Sell rating and raised a target to Rs 4,420 per share. The brokerage also raised their FY22-24 EBITDA estimates by 8-13 per cent.

It’s a strong quarter for pharmacy and new hospital occupancy is at a record high and earnings momentum and a higher valuation for Apollo Hospital, CLSA said in its brokerage note.