APOLLOHOSP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | APOLLOHOSP | Market Cap | 1,20,282 Cr. | Current Price | 8,361 ₹ | High / Low | 8,440 ₹ |
| Stock P/E | 80.1 | Book Value | 693 ₹ | Dividend Yield | 0.23 % | ROCE | 17.6 % |
| ROE | 16.1 % | Face Value | 5.00 ₹ | DMA 50 | 7,768 ₹ | DMA 200 | 7,463 ₹ |
| Chg in FII Hold | -0.92 % | Chg in DII Hold | 1.26 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 392 Cr. |
| RSI | 72.1 | MACD | 160 | Volume | 5,88,234 | Avg Vol 1Wk | 6,85,211 |
| Low price | 6,680 ₹ | High price | 8,440 ₹ | PEG Ratio | 6.76 | Debt to equity | 0.32 |
| 52w Index | 95.5 % | Qtr Profit Var | 14.7 % | EPS | 104 ₹ | Industry PE | 48.6 |
📊 Financial Overview:
APOLLOHOSP shows strong revenue and profit generation but faces valuation concerns. Quarterly PAT stood at ₹382 Cr., slightly lower than the previous ₹392 Cr. ROCE at 17.6% and ROE at 16.1% indicate healthy capital efficiency. Debt-to-equity at 0.32 is manageable, though leverage is higher than peers. EPS at ₹104 reflects solid profitability. Cash flows appear stable, supported by consistent earnings and strong hospital operations.
💹 Valuation Indicators:
The stock trades at a P/E of 80.1, significantly above the industry average of 48.6, suggesting overvaluation. P/B ratio is ~12.1 (8361 ÷ 693), which is elevated. PEG ratio of 6.76 indicates poor valuation relative to growth prospects. Dividend yield of 0.23% is minimal, offering little income support. Intrinsic value appears lower than current price, limiting upside potential.
🏢 Business Model & Advantage:
APOLLOHOSP operates in healthcare services, with a strong presence in hospitals, pharmacies, and diagnostics. Its competitive advantage lies in brand strength, scale, and integrated healthcare offerings. Institutional sentiment is mixed, with FIIs reducing holdings (-0.92%) while DIIs increased (+1.26%), reflecting cautious optimism.
📈 Entry Zone:
Technically, support lies near ₹7,768 (50 DMA) and ₹7,463 (200 DMA). A favorable entry zone would be between ₹7,500–₹7,800 if valuations cool down. Long-term investors may hold given strong fundamentals and sector growth, though stretched valuations warrant caution.
Positive
- 📌 Strong ROCE (17.6%) and ROE (16.1%) indicate healthy efficiency.
- 📌 EPS of ₹104 reflects solid profitability.
- 📌 DII holdings increased (+1.26%), showing domestic investor confidence.
- 📌 Strong brand presence and diversified healthcare services.
Limitation
- ⚠️ Very high P/E (80.1) compared to industry average (48.6).
- ⚠️ Elevated P/B ratio (~12.1).
- ⚠️ PEG ratio (6.76) suggests poor valuation relative to growth.
- ⚠️ Dividend yield (0.23%) is minimal.
- ⚠️ FII holdings decreased (-0.92%), showing reduced foreign confidence.
Company Negative News
- 📰 Slight decline in quarterly PAT (₹382 Cr. vs ₹392 Cr.) raises caution.
Company Positive News
- 📰 Strong institutional support from DIIs (+1.26%).
- 📰 Continued leadership in healthcare services with integrated offerings.
Industry
- 🌐 Healthcare industry benefits from rising demand for hospitals, diagnostics, and pharmacies in India.
- 🌐 Industry P/E at 48.6 reflects growth potential, while APOLLOHOSP trades at a steep premium.
Conclusion
✅ APOLLOHOSP is financially strong with solid profitability, efficient returns, and a leading healthcare brand. However, stretched valuations and modest dividend yield make it risky for fresh entry. Entry is advisable near ₹7,500–₹7,800 with caution. Long-term holding is supported by sector growth and brand strength, but investors should monitor earnings momentum and valuation multiples closely.
For deeper insights, you could explore a peer comparison or a healthcare sector outlook to complement this analysis.