APOLLOHOSP - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 3.7
| Stock Code | APOLLOHOSP | Market Cap | 1,00,971 Cr. | Current Price | 7,022 ₹ | High / Low | 8,100 ₹ |
| Stock P/E | 72.0 | Book Value | 648 ₹ | Dividend Yield | 0.27 % | ROCE | 16.4 % |
| ROE | 15.1 % | Face Value | 5.00 ₹ | DMA 50 | 7,366 ₹ | DMA 200 | 7,285 ₹ |
| Chg in FII Hold | 0.71 % | Chg in DII Hold | -0.22 % | PAT Qtr | 420 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 25.2 | MACD | -147 | Volume | 3,89,019 | Avg Vol 1Wk | 3,40,574 |
| Low price | 6,001 ₹ | High price | 8,100 ₹ | PEG Ratio | 3.04 | Debt to equity | 0.34 |
| 52w Index | 48.7 % | Qtr Profit Var | 13.6 % | EPS | 97.5 ₹ | Industry PE | 51.8 |
📊 Core Financials:
- Profitability: PAT improved from 307 Cr. to 420 Cr. (+13.6% QoQ), showing growth momentum.
- Margins: ROCE at 16.4% and ROE at 15.1% reflect moderate efficiency.
- Debt: Debt-to-equity at 0.34 → manageable leverage, but requires monitoring.
- EPS: 97.5 ₹, strong earnings power supporting valuation.
💹 Valuation Indicators:
- P/E: 72.0 vs Industry PE of 51.8 → significantly overvalued.
- P/B: 7,022 ₹ / 648 ₹ ≈ 10.8, steep premium to book value.
- PEG Ratio: 3.04 → indicates overvaluation relative to growth.
- Intrinsic Value: Estimated fair value ~6,400–6,600 ₹, suggesting current price is moderately overvalued.
🏢 Business Model & Competitive Advantage:
Apollo Hospitals operates in healthcare services, with a strong presence in hospitals, pharmacies, and diagnostics. Competitive advantage lies in brand leadership, integrated healthcare model, and scale across India. However, high valuations and moderate return ratios limit near-term attractiveness.
📈 Entry Zone & Long-Term Guidance:
- Entry Zone: Attractive accumulation range between 6,400–6,600 ₹.
- Long-Term Holding: Suitable for long-term investors seeking exposure to healthcare growth, though premium valuations warrant cautious entry.
Positive
- Strong PAT growth (+13.6% QoQ) indicates operational improvement.
- EPS of 97.5 ₹ reflects solid earnings power.
- FII holdings increased (+0.71%), showing foreign investor confidence.
- Strong brand presence and diversified healthcare services.
Limitation
- High P/E ratio (72.0) compared to industry average (51.8).
- P/B ratio of 10.8 reflects steep premium valuation.
- PEG ratio of 3.04 indicates overvaluation relative to growth.
- Technical weakness: RSI at 25.2 and MACD (-147) reflect bearish sentiment.
Company Negative News
- DII holdings decreased (-0.22%), showing reduced domestic institutional support.
- Technical indicators (MACD negative, RSI oversold) show short-term weakness.
Company Positive News
- Quarterly PAT growth highlights improving performance.
- FII holdings increased, showing foreign investor confidence.
- Strong brand leadership in healthcare sector.
Industry
- Healthcare sector supported by rising demand for hospitals, diagnostics, and preventive care.
- Industry PE at 51.8 indicates moderate valuation compared to Apollo’s premium.
- Sector growth expected with increasing healthcare awareness and infrastructure expansion.
Conclusion
⚖️ Apollo Hospitals demonstrates strong fundamentals with consistent profitability, brand leadership, and sector tailwinds. However, high valuations and weak technicals limit near-term attractiveness. Investors should consider entry near 6,400–6,600 ₹ for value-conscious positioning, with long-term holding viable for those seeking exposure to healthcare growth.
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