Goal: ₹9,036
CMP: ₹6,374.90
Apollo Hospitals Enterprise (APHS) Q3-FY25 EBITDA marginally missed BNPP/Bloomberg estimates by 2/3 per cent, owing to reasonably lower- than-expected development within the hospital phase. Hospitals/HealthCo/AHLL income grew 13/15/15 per cent y-o-y with 24.1 per cent EBITDA margin for the hospital phase.
Consolidated EBITDA got here in at 13.8 per cent (vs BNPPe 13.8 per cent). The GMV of the digital well being platform remained flat q-o-q at ₹760 crore. APHS highlighted that the continuing India/Bangladesh subject impacted 1.5 per cent of hospital income and reaffirmed its ARPOB development steering of 6 per cent for FY26/27.
We stay upbeat on the Indian hospitals sector as we consider it presents a number of development drivers, like bettering occupancy of current beds, annual development in ARPOB and bed-count enlargement. We view APHS as a powerful participant on this sector. We decrease our FY25-27E EBITDA by 1 per cent as we tweak our development assumptions for the hospital phase owing to fewer worldwide sufferers from Bangladesh because of the continuing battle between two nations resulting in issuance of fewer visas.
We preserve our valuation parameters unchanged (incl. 29x FY27E goal EV/EBITDA for the hospital phase and revise our TP to ₹9,036 (₹9,142 earlier).
