Apollo Hospitals Stock SURGES? Analyst Issues MASSIVE BUY Call with Rs 9,300 Target! 🚀

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Updated on 13 Nov 2025, 08:21 am

Apollo Hospitals reported consolidated EBITDA of Rs 9.4 billion (up 15% YoY), which was almost in line with expectations. Adjusted for specific losses and costs, the EBITDA was Rs 10.7 billion (up 12% YoY).

The sale of stake in HealthCo to Advent and its merger with Keimed are seen as positive steps towards building an integrated pharmacy and digital health platform. Apollo HealthCo is scaling up well, and its digital arm is expected to reach EBITDA breakeven in 2-3 quarters.

The management announced plans to demerge its Omnichannel Pharmacy business (24x7) and telehealth business into a new, separately listed entity (NewCo). This aims to unlock shareholder value by creating a focused, high-growth, consumer-centric platform in the pharmacy and digital healthcare space.

Management projects Rs 17.5 billion EBITDA for the merged entity by FY27. Prabhudas Lilladher forecasts a 26% EBITDA Compound Annual Growth Rate (CAGR) from FY25 to FY28. The brokerage maintains a 'BUY' rating with a target price of Rs 9,300 per share, applying a 30x EV/EBITDA multiple to the hospital and offline pharmacy businesses, and a 1x sales multiple to the 24/7 business for valuation.

Impact These strategic maneuvers, particularly the demerger, are expected to create specialized entities, potentially leading to higher valuations and improved investor focus on different business segments. The 'BUY' rating and high target price suggest strong positive sentiment from the brokerage. Rating: 8/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance, showing profitability before accounting for financing decisions, accounting decisions, and asset aging. YoY: Year-over-Year. This compares a period's performance to the same period in the previous year. Stake Sale: Selling a portion of ownership in a company or business unit. Merger: The combination of two or more companies into a single new entity. Integrated Pharmacy and Digital Health Platform: A business model that combines physical pharmacies, online sales, and digital health services under one umbrella. EBITDA Breakeven: The point at which a company's earnings (before interest, taxes, depreciation, and amortization) are exactly zero, meaning it is neither making a profit nor a loss from its operations. Demerger: The separation of a company into two or more independent companies, often a division or subsidiary spun off into its own publicly traded entity. Omnichannel Pharmacy: A pharmacy that offers services across multiple channels, including physical stores, online websites, mobile apps, and telephone orders. Telehealth: The distribution of health services and information via electronic information and telecommunications technologies. EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization. A valuation multiple used to compare companies and assess their value relative to their operating performance. CAGR: Compound Annual Growth Rate. The mean annual growth rate of an investment over a specified period of time longer than one year.