APOLLOHOSP - Investment Analysis

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

Investment Rating: 3.8

🧾 Fundamental Analysis Summary

Apollo Hospitals (APOLLOHOSP) is a leading player in India’s healthcare sector, known for its brand strength and consistent profitability. While its long-term growth metrics like ROE and ROCE are solid, the current valuation is stretched, and the PEG ratio signals overvaluation relative to earnings growth. The stock is near its 52-week high, suggesting limited short-term upside unless earnings accelerate.

Metric Value Interpretation

P/E Ratio 74.1 Very high — premium valuation

PEG Ratio 3.79 Overvalued — price far exceeds growth expectations

ROE / ROCE 19.1% / 17.1% Good — but not exceptional for this valuation level

Dividend Yield 0.25% Low — reinvestment-focused strategy

Debt-to-Equity 0.96 High — leverage risk needs monitoring

EPS ₹101 Decent — supports valuation but not aggressive

PAT Growth (QoQ) +4.8% Mild — not a breakout quarter

Book Value ₹571 Price-to-book ~13× — very high

RSI / MACD 57.9 / +57.9 Neutral — no strong momentum signal

DMA 50 / 200 ₹7,201 / ₹6,890 Price above both — bullish trend

52W Price Range ₹6,001 – ₹7,635 Currently at 89% of 52W high — limited upside

FII/DII Change +0.75% / -0.95% Mixed — slight FII interest, DII trimming

📉 Ideal Entry Price Zone

Entry Zone: ₹6,600 – ₹7,000

Below 50-DMA and PEG closer to 3.0 — better valuation entry.

Avoid entry above ₹7,500 unless PEG improves and earnings accelerate.

🧭 Exit Strategy & Holding Period

Holding Period

3–5 years — suitable for moderate-term holding with healthcare exposure.

Exit Strategy

Exit partially if PEG remains above 3.5 and ROCE drops below 15%.

Consider trimming if price exceeds ₹7,800 without matching EPS or PAT growth.

Key Metrics to Monitor

ROCE trending above 20%

PEG ratio falling below 2.0

PAT growth > 15% YoY

Debt-to-equity improving below 0.7

🧠 Final Thoughts

Apollo Hospitals is a high-quality defensive stock with strong brand equity and stable earnings. However, its current valuation is rich, and growth metrics don’t fully justify the premium. Long-term investors may hold with caution, while new entrants should wait for a better valuation zone. Ideal for portfolio diversification into healthcare, but not a deep-value play at current levels.

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