APOLLOHOSP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | APOLLOHOSP | Market Cap | 1,01,556 Cr. | Current Price | 7,063 ₹ | High / Low | 8,100 ₹ |
| Stock P/E | 72.4 | Book Value | 648 ₹ | Dividend Yield | 0.27 % | ROCE | 16.4 % |
| ROE | 15.1 % | Face Value | 5.00 ₹ | DMA 50 | 7,137 ₹ | DMA 200 | 7,227 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | 0.38 % | PAT Qtr | 420 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 52.7 | MACD | -64.8 | Volume | 4,53,601 | Avg Vol 1Wk | 4,16,072 |
| Low price | 6,001 ₹ | High price | 8,100 ₹ | PEG Ratio | 3.05 | Debt to equity | 0.34 |
| 52w Index | 50.6 % | Qtr Profit Var | 13.6 % | EPS | 97.5 ₹ | Industry PE | 45.3 |
📊 Financials: APOLLOHOSP shows moderate fundamentals with ROCE at 16.4% and ROE at 15.1%, reflecting decent capital efficiency. Quarterly PAT improved from ₹307 Cr. to ₹420 Cr., showing strong earnings growth. Debt-to-equity at 0.34 indicates manageable leverage. EPS of ₹97.5 is solid relative to its market cap of ₹1,01,556 Cr.
💹 Valuation: The stock trades at a P/E of 72.4, well above the industry average of 45.3, suggesting significant overvaluation. P/B ratio is ~10.9 (7063/648), which is expensive compared to peers. PEG ratio of 3.05 highlights stretched valuations relative to growth. Dividend yield of 0.27% provides minimal income support.
🏢 Business Model & Competitive Advantage: APOLLOHOSP operates in healthcare services, with hospitals, pharmacies, and diagnostic centers. Its competitive advantage lies in brand leadership, scale, and diversified healthcare offerings. However, high valuations and moderate return metrics limit investor comfort despite strong industry positioning.
📈 Entry Zone: Technicals show RSI at 52.7 (neutral) and MACD negative, with price below DMA 50 & 200. Accumulation may be considered near ₹6,200–6,500 for long-term investors. Current valuations are stretched, so cautious entry is recommended.
Positive
- Strong brand leadership in healthcare services.
- Quarterly PAT growth from ₹307 Cr. to ₹420 Cr.
- DII holdings increased by 0.38%, reflecting domestic institutional support.
Limitation
- High P/E ratio (72.4) compared to industry average (45.3).
- P/B ratio (~10.9) indicates expensive valuation.
- Dividend yield of 0.27% is modest.
Company Negative News
- FII holdings decreased by -0.66%, showing reduced foreign investor confidence.
- Weak technical momentum with MACD negative.
Company Positive News
- DII holdings increased (+0.38%), showing domestic institutional support.
- Quarterly PAT growth highlights operational strength.
Industry
- Healthcare sector benefits from rising demand for medical services and diagnostics.
- Industry P/E at 45.3 is lower than APOLLOHOSP, showing sector-wide value opportunities.
- Government push for healthcare infrastructure supports long-term growth.
Conclusion
🔎 APOLLOHOSP is financially stable with strong brand presence and consistent profitability. While valuations are stretched and technical momentum is weak, fundamentals and industry tailwinds support long-term holding. Entry near ₹6,200–6,500 is attractive for investors seeking exposure to healthcare growth, but conservative investors should wait for improved valuation levels.