Stock To Buy: Large Cap Stock Gave 265% Return In 3 Yrs, Rallies 3.18%, Declares 180% Dividend

Prabhudas Lilladher assigned Buy on Apollo Hospitals Enterprise Ltd. (APHS) with a revised target price of Rs. 5300/share. Considering the given target price, the stock is likely to give up to 7% return if the stock is purchased at the current market price.

Apollo Hospitals was established in 1983 by Dr. Prathap C Reddy, renowned as the architect of modern healthcare in India. As the nation's first corporate hospital, Apollo Hospitals is acclaimed for pioneering the private healthcare revolution in the country. It is a large-cap hospital sector company having a market capitalisation of Rs. 71,422.15 crore.

Dividend

The company in the exchange filing has said, "Recommended a final dividend of Rs. 9/-per Equity Share (180%) of the face value of of Rs. 5/- per share to the shareholders of the Company for the FY2022-23. The dividend recommended by the Board of Directors of the Company is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company."

Fixation of Record Date

The company in the exchange filing has said, "The Board has fixed the record date as Saturday, 19th August 2023 for the purpose of determining the names of the shareholders who are entitled for the final dividend and also for the purpose of the Annual General Meeting. The dividend, if approved by the shareholders at the AGM, will be paid, subject to deduction of tax at source, on and from September 9, 2023."

Strong FY24 guidance across segments

According to brokerage, Apollo hospitals enterprise's (APHS) consolidated EBITDA at Rs4.9bn (down 3% QoQ) was below our estimate. Adjusted for 24x7 losses (Rs2.2bn), EBITDA was at Rs 7.1bn, flat QoQ vs our est of Rs7.3bn.

"We believe APHS has created a solid growth platform across segments and digital foraying has further made it a strong Omni channel play. The company also has good presence in offline format, making it more of a formidable player than just pure play online company. Though stake sale in Apollo HealthCo has been delayed, scale up in business is on track. Our FY24 and FY25E EBITDA stands reduced by ~3%," the brokerage has said.

It added, "Overall we estimate 18% EBITDA CAGR over FY23-25E (ex 24x7). Maintain 'BUY' rating with revised TP of Rs5,300/share. We ascribe 22x EV/EBITDA multiple to hospital segment and 20x to offline pharmacy and AHLL, also assign zero value to the 24/7 business."

Stock Outllook

The stock of APHS last traded at Rs. 4,967.30/share, up 3.18% from its previous close of Rs. 4814.25/share. Its 52 week low is Rs. 3525/share and 52 week high is Rs. 5002.20/share.

It has given 7.75% positive return in 1 week. In the past 1 month it jumped 10.61% and in 3 month it jumped 12.84%. It gave 36.27% positive return in 1 year. It gave 265.07% positive return in 3 years, and 435.79% in 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.