⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
APOLLOHOSP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | APOLLOHOSP | Market Cap | 1,07,346 Cr. | Current Price | 7,469 ₹ | High / Low | 8,100 ₹ |
| Stock P/E | 73.9 | Book Value | 648 ₹ | Dividend Yield | 0.25 % | ROCE | 16.4 % |
| ROE | 15.1 % | Face Value | 5.00 ₹ | DMA 50 | 7,462 ₹ | DMA 200 | 7,318 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | 0.38 % | PAT Qtr | 392 Cr. | PAT Prev Qtr | 420 Cr. |
| RSI | 44.5 | MACD | 39.8 | Volume | 5,03,523 | Avg Vol 1Wk | 4,70,109 |
| Low price | 6,227 ₹ | High price | 8,100 ₹ | PEG Ratio | 3.12 | Debt to equity | 0.34 |
| 52w Index | 66.3 % | Qtr Profit Var | 14.8 % | EPS | 100 ₹ | Industry PE | 43.5 |
📊 Financials
- Revenue & Profitability: PAT declined from ₹420 Cr. to ₹392 Cr., showing short-term weakness. EPS at ₹100 remains strong, reflecting solid earnings capacity.
- Margins & Returns: ROCE at 16.4% and ROE at 15.1% are healthy, indicating efficient capital utilization.
- Debt & Liquidity: Debt-to-equity ratio of 0.34 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Dividend yield of 0.25% provides minimal shareholder returns.
💹 Valuation
- P/E Ratio: 73.9 vs Industry PE of 43.5 — trading at a significant premium.
- P/B Ratio: Current price ₹7,469 vs Book Value ₹648 — ~11.5x book value, expensive relative to assets.
- PEG Ratio: 3.12 — suggests stretched valuation relative to growth.
- Intrinsic Value: Current price is above fair value, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in healthcare services with strong brand presence and diversified offerings.
- High ROCE and ROE reflect operational efficiency and competitive strength.
- Moderate debt levels are manageable, but valuations remain stretched.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹7,200 – ₹7,400, near DMA 50 support.
- Long-Term Holding: Strong fundamentals and industry tailwinds make it a good candidate for long-term holding. Accumulate on dips for sustained growth.
✅ Positive
- Healthy ROCE (16.4%) and ROE (15.1%) highlight efficiency.
- Debt-to-equity ratio of 0.34 ensures financial stability.
- DII holdings increased by 0.38%, showing domestic institutional confidence.
- MACD positive (39.8) indicates bullish technical momentum.
⚠️ Limitation
- High P/E ratio (73.9) compared to industry average (43.5).
- Dividend yield of 0.25% is minimal.
- Quarterly PAT declined (-6.7%), showing short-term weakness.
📉 Company Negative News
- FII holdings declined by 0.66%, showing reduced foreign investor confidence.
- Stock trading near resistance levels with limited upside in short term.
📈 Company Positive News
- Strong EPS of ₹100 reflects robust earnings capacity.
- DII holdings increased, showing confidence from domestic institutions.
- MACD positive indicates bullish technical signals.
🏭 Industry
- Healthcare sector benefits from rising demand and structural growth.
- Industry PE at 43.5 is lower than company’s valuation, highlighting premium pricing for APOLLOHOSP.
🔎 Conclusion
APOLLOHOSP demonstrates strong fundamentals with healthy efficiency, moderate debt, and robust earnings. However, valuations are stretched and short-term profit decline raises caution. Best strategy: accumulate near ₹7,200–₹7,400 and hold for long-term gains, leveraging healthcare industry growth and the company’s strong brand presence.