Apollo Hospitals Climbs on Citi's Asia Focus List Inclusion

HEALTHCAREBIOTECH
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AuthorAarav Shah|Published at:
Apollo Hospitals Climbs on Citi's Asia Focus List Inclusion
Overview

Apollo Hospitals Enterprise Ltd. shares climbed Tuesday after Citi reiterated its 'buy' rating and added the company to its Asia Focus List. The brokerage set a ₹9,600 price target, indicating 34% upside. This follows strong December quarter results and Citi's positive view on the hospital sector.

Citi Boosts Apollo Hospitals Stock with Asia Focus List Inclusion

Apollo Hospitals Enterprise Ltd. stock surged Tuesday, driven by strong support from financial firm Citi. The brokerage not only kept its 'buy' rating but also added the hospital operator to its Asia Focus List. This move, along with a ₹9,600 price target, suggests Citi expects a 34% rise from current levels.

Why Citi is Bullish on Apollo Hospitals

Citi's confidence comes from several factors. The firm noted the steady performance of Apollo's core hospital business and the growing profitability of its digital pharmacy operations. Citi also pointed to favorable pricing, stating that both absolute and relative valuations are below past averages, making it a good time to invest.

Solid December Quarter Results

Apollo Hospitals' positive outlook is supported by strong results from the December quarter, which beat market estimates. Net profit rose 35% year-on-year to ₹502.3 crore. Revenue from operations grew 17.2% to ₹6,477 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased 26.7% to ₹965 crore, with the operating margin improving to 14.9% from 13.8% a year ago.

Broad Analyst Support

Most analysts share Citi's positive view. Out of 30 analysts covering Apollo Hospitals, 27 recommend 'buy'. Two suggest holding the stock, and only one advises selling. Shares were trading up about 4.3% on Tuesday at ₹7,455, and have gained 5% year-to-date.

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