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 progress within the hospital section. Hospitals/HealthCo/AHLL income grew 13/15/15 per cent y-o-y with 24.1 per cent EBITDA margin for the hospital section.
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 situation impacted 1.5 per cent of hospital income and reaffirmed its ARPOB progress steering of 6 per cent for FY26/27.
We stay upbeat on the Indian hospitals sector as we imagine it affords a number of progress drivers, like enhancing occupancy of current beds, annual progress in ARPOB and bed-count enlargement. We view APHS as a robust participant on this sector. We decrease our FY25-27E EBITDA by 1 per cent as we tweak our progress assumptions for the hospital section owing to fewer worldwide sufferers from Bangladesh on account of the continuing battle between two nations resulting in issuance of fewer visas.
We maintain our valuation parameters unchanged (incl. 29x FY27E goal EV/EBITDA for the hospital section and revise our TP to ₹9,036 (₹9,142 earlier).
