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UBS Investment Research
Apollo Hospitals Enterprise
News reports about CBI raids on one of the
directors: Nothing new
Event: Media reports about CBI raid on one of the directors
There are some media reports of a CBI raid against one of the directors, and key
shareholder of Apollo Hospitals in context of her role in the Aircel/Maxis deal. We
spoke with the company and as per the company, this is in continuation of prior
CBI questioning of the same director. The director has a stake in Aircel through a
separate entity and not through Apollo Hospitals. Also, Maxis has clarified that it
holds 99% economic interest in Aircel, through the Apollo Hospitals director. We
think this newsflow is not a new event.
Impact: No impact on Apollo Hospitals
We expect that this newsflow is not important to Apollo Hospitals.
Action: Reiterate Buy rating and Rs650 price target
We believe that the current newsflow will not impact Apollo Hospitals’
fundamentals. We believe Apollo Hospitals provides an attractive investment
opportunity to investors to invest in a secular growth story in the Indian healthcare
space. We retain our Buy rating and Rs650 price target.
Valuation: sum of the parts
We base our price target on our sum-of-the-parts valuation methodology, valuing
the consolidated entity (Rs625/share) on DCF. We explicitly forecast long-term
valuation drivers using UBS’s VCAM tool (assuming an 11.85% WACC). At our
price target, Apollo Hospitals would trade at 13.3x FY13E EV/EBITDA.
See full list -click link below:
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Apollo Hospitals Enterprise
News reports about CBI raids on one of the
directors: Nothing new
Event: Media reports about CBI raid on one of the directors
There are some media reports of a CBI raid against one of the directors, and key
shareholder of Apollo Hospitals in context of her role in the Aircel/Maxis deal. We
spoke with the company and as per the company, this is in continuation of prior
CBI questioning of the same director. The director has a stake in Aircel through a
separate entity and not through Apollo Hospitals. Also, Maxis has clarified that it
holds 99% economic interest in Aircel, through the Apollo Hospitals director. We
think this newsflow is not a new event.
Impact: No impact on Apollo Hospitals
We expect that this newsflow is not important to Apollo Hospitals.
Action: Reiterate Buy rating and Rs650 price target
We believe that the current newsflow will not impact Apollo Hospitals’
fundamentals. We believe Apollo Hospitals provides an attractive investment
opportunity to investors to invest in a secular growth story in the Indian healthcare
space. We retain our Buy rating and Rs650 price target.
Valuation: sum of the parts
We base our price target on our sum-of-the-parts valuation methodology, valuing
the consolidated entity (Rs625/share) on DCF. We explicitly forecast long-term
valuation drivers using UBS’s VCAM tool (assuming an 11.85% WACC). At our
price target, Apollo Hospitals would trade at 13.3x FY13E EV/EBITDA.
See full list -click link below:
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