Hold Apollo Hospitals Enterprise: target of Rs 8500: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Apollo Hospitals' hospital business is expected to drive growth, with established hospitals benefiting from improving occupancy, higher inpatient volumes, and favorable case mix.
  • Healthco's profitability is expected to improve, driven by healthy growth in offline pharmacy and online operations, with a focus on scaling order volumes and improving unit economics.
  • The company's expansion plans, including the addition of new hospital beds and the proposed demerger and listing of the combined pharmacy business, are expected to drive long-term growth.
  • The digital business has turned cash positive, and management is focused on maintaining growth momentum and margins ahead.

Thesis Validation Checklist

  • Investors should watch for occupancy rates, inpatient volumes, and case mix improvements in established hospitals.
  • Healthco's revenue and EBITDA margin growth, particularly in offline pharmacy and online operations, will be key indicators of the company's ability to scale and improve profitability.
  • The successful demerger and listing of the combined pharmacy business and the company's ability to maintain growth momentum and margins will be important signals to validate the investment thesis.