APOLLOHOSP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a deep dive into Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) — India's leading healthcare player with admirable returns and sector leadership, but currently trading at a premium valuation and facing near-term balance sheet tightness.

💼 Core Financial Highlights

Profitability & Returns

EPS: ₹101 — robust earnings, showing consistency in operations.

ROE: 19.1% and ROCE: 17.1% — solid but not extraordinary, likely due to capex intensity in healthcare infra.

PAT Qtr: ₹390 Cr vs ₹372 Cr — +53.5% growth YoY; excellent rebound, likely aided by non-COVID normalized footfalls.

Leverage & Liquidity

Debt-to-Equity: 0.96 — high gearing; indicates expansion-led debt load, typical in hospital infra.

Dividend Yield: 0.25% — minimal payout; reinvestment prioritization.

📊 Valuation Overview

Metric Value Commentary

P/E Ratio 74.1 🚩 Elevated vs Industry PE: 69.2; reflects growth optimism

P/B Ratio ~13.1 Expensive compared to Book Value ₹571

PEG Ratio 3.79 ❗Significantly overvalued vs earnings growth trajectory

Intrinsic Value ❌ Slightly Below CMP Fair value suggests limited upside short-term

🧠 Business Model & Competitive Advantage

India’s largest hospital chain, diversified across specialties, diagnostics, pharmacy retail, and wellness services.

Strong brand trust, high urban presence, and increasing focus on digital health platforms.

Positioned well for secular tailwinds like rising healthcare awareness and insurance penetration.

FII Hold ↑ 0.75%, but DII Hold ↓ 0.95% — mixed signals; foreign confidence outpaces domestic caution.

📈 Technical Analysis Snapshot

RSI: 57.9 — mildly bullish, not overheated.

MACD: +57.9 — trending positively.

CMP ₹7,456 is trading above DMA 50 & 200, indicating sustained uptrend.

52W Index at 89% — near high zone ₹7,635; upside may be capped near-term.

🎯 Entry Zone & Long-Term Strategy

Suggested Entry Zone: ₹7,000–₹7,150 — ideal during slight pullbacks or sector-wide corrections.

Long-Term Outlook

Ideal for defensive portfolios, particularly in times of economic uncertainty.

Watch for margin expansion in pharmacy and diagnostics segments.

Maintain caution on debt metrics and asset-heavy growth.

Continued scalability and digital integration could unlock further value.

Want me to chart this against sector names like Fortis, Narayana Health, or Max Healthcare to benchmark valuation, returns, and strategic positioning? I can map them out in a clean comparison grid 📐📊.

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