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About the Company
Apollo Hospitals Enterprises Limited (AHEL) is an Indian company into the healthcare business. AHEL is one of Asia’s largest
healthcare groups. The company has presence at the every touch point of the medical value chain and has presence both in India
and abroad.
In the medical field, the business of the company is diversified into diagnostics clinic, pharmacies, medical business process
outsourcing, hospital consultancy and health insurance. Through its subsidiary, Unique Home Health Care Limited, the company
provides medicines and paramedical services to the door steps of the patients.
Investment Rationale
In the last 18 months, AHEL has added about 850 beds and has plans to add 150 more beds by the end of the year. In FY13 it has
plans for 730 new beds and in FY14 for 1,350 new beds. AHEL is aiming to have 49 fully owned hospitals with 10,000 beds across
the country by 2014. The company has finalized six sites for its expansion plans which are in Mumbai, Nashik and Tiruchi. This
requires an investment of ` 16bn which will be funded through debt and equity. It is also looking to expand its footprint in tier-II and
tier-III cities.
AHEL is focused on reducing average length of stay (ALOS) and increase ARPOB through pricing and case-mix improvement
Valuation
At the current level the stock is trading at 20.26x to the earnings of FY13E and 16.75x to the earnings of FY14E. Standalone topline
and bottomline of the company are expected to grow at a CAGR of 27% and 29% respectively over FY11 to FY14E. We recommend
investors to buy this scrip with a target price of ` 608.00 per share for long term.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
About the Company
Apollo Hospitals Enterprises Limited (AHEL) is an Indian company into the healthcare business. AHEL is one of Asia’s largest
healthcare groups. The company has presence at the every touch point of the medical value chain and has presence both in India
and abroad.
In the medical field, the business of the company is diversified into diagnostics clinic, pharmacies, medical business process
outsourcing, hospital consultancy and health insurance. Through its subsidiary, Unique Home Health Care Limited, the company
provides medicines and paramedical services to the door steps of the patients.
Investment Rationale
In the last 18 months, AHEL has added about 850 beds and has plans to add 150 more beds by the end of the year. In FY13 it has
plans for 730 new beds and in FY14 for 1,350 new beds. AHEL is aiming to have 49 fully owned hospitals with 10,000 beds across
the country by 2014. The company has finalized six sites for its expansion plans which are in Mumbai, Nashik and Tiruchi. This
requires an investment of ` 16bn which will be funded through debt and equity. It is also looking to expand its footprint in tier-II and
tier-III cities.
AHEL is focused on reducing average length of stay (ALOS) and increase ARPOB through pricing and case-mix improvement
Valuation
At the current level the stock is trading at 20.26x to the earnings of FY13E and 16.75x to the earnings of FY14E. Standalone topline
and bottomline of the company are expected to grow at a CAGR of 27% and 29% respectively over FY11 to FY14E. We recommend
investors to buy this scrip with a target price of ` 608.00 per share for long term.
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