Latest news with #ApolloHospitalsEnterprise
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Business Standard
03-07-2025
- Business
- Business Standard
Max, Aster DM, Apollo rally up to 7%; what's driving hospital stocks today?
Hospital stocks in focus: Shares of the listed companies engaged in hospital business like Max Healthcare Institute, Aster DM Healthcare and Apollo Hospitals Enterprise have rallied up to 7 per cent, hitting their respective new highs on the BSE in Thursday's intra-day trade on healthy business outlook. Among the individual stocks, Aster DM Healthcare has surged 7 per cent to ₹638.60, on the back of a 20-fold jump in average trading volumes. A combined 16.06 million equity shares representing 3.2 per cent of total equity of the company have changed hands on the NSE and BSE. Shares of Apollo Hospitals Enterprise (₹7,599.75) and Max Healthcare Institute (₹1,308.55) were up 2 per cent on the BSE. Besides these three stocks, Global Health, Fortis Healthcare, Fortis Malar Hospitals, Narayana Hrudayalaya and Yatharth Hospital & Trauma Care Services were up in the range of 1 per cent to 3 per cent. In comparison, the BSE Sensex was up 0.18 per cent at 83,562 at 02:07 PM. What's driving hospital stocks? According to CRISIL MI&A Research, the Indian healthcare delivery industry is projected to experience major growth, with a compound annual growth rate (CAGR) of 9-11 per cent anticipated between fiscal years 2025 and 2027. This growth trajectory is underpinned by several long term structural factors, including rising healthcare needs due to demographic shifts and increasing chronic disease prevalence. Additionally, the industry's strong fundamentals, coupled with improving affordability among the population, are expected to drive demand for healthcare services. Furthermore, the potential impact of initiatives such as the Ayushman Bharat scheme, aimed at providing universal health coverage, is poised to further propel industry growth during this period. With sustained support from long-term structural factors, renewed emphasis on the Pradhan Mantri Jan Arogya Yojana (PMJAY), and heightened Government focus on the healthcare sector, the healthcare delivery market is projected to expand at a CAGR of approximately 9-11 per cent, reaching ₹8.6 trillion by fiscal 2027, Apollo Hospital said in its annual report. Given the major mismatch between demand and supply for quality beds, along with the improved financial health of corporate hospitals following the pandemic, players appear well-positioned to achieve profitable growth as they strengthen their presence in core markets and venture into Tier 2+ areas geographies, CareEdge Ratings said. CareEdge Ratings forecasts that the corporate hospital chains in its coverage will achieve approximately 10-12 per cent year-on-year sales growth in fiscal 2026, driven by a 5-6 per cent increase in Average Revenue Per Occupied Bed (ARPOB), a 100-200 basis point (bps) improvement in occupancy, and rise in new bed additions. With significant untapped market opportunities and a shortage of healthcare infrastructure in India, leading Indian companies have immense potential for expansion. Supported by long-term structural growth factors, renewed momentum from PMJAY, and increased government focus on the healthcare sector, the Indian hospital sector is projected to grow at a CAGR of 10-11 per cent over the next 3-5 years. Key demand drivers include the rise in lifestyle-related diseases, growing medical tourism, increasing incomes, and demographic changes. With limited government capital expenditure and a lack of infrastructure, the private sector is expected to experience accelerated growth in the years to come, CareEdge Ratings said in its March 2025 report.
Mint
01-07-2025
- Business
- Mint
Apollo Hospitals share price jumps over 4% 50 52-week high on plans to list digital health, pharmacy businesses
Apollo Hospitals share price rallied over 4% to hit 52-week high on Tuesday after the company's board approved separate listing of its omnichannel pharmacy and digital health businesses within 18-21 months, as part of reorganisation exercise to unlock value. Apollo Hospitals shares jumped as much as 4.7% to a fresh high of ₹ 7,583.30 apiece on the BSE. The board of directors of Apollo Hospitals Enterprise and Apollo HealthCo, a subsidiary of the healthcare major, have accorded in-principle approval for the composite scheme of arrangement. The scheme entails the demerger of the Omni Channel Pharma and Digital Health business - comprising the telehealth business of Apollo and its investment in Apollo HealthCo Ltd - into a new entity. Following the demerger, the scheme provides for the amalgamation of Apollo HealthCo with the new entity. This will subsequently be followed by the amalgamation of Keimed Pvt Ltd with NewCo (new entity). 'The proposed transaction will result in the creation of the largest, integrated omni-channel healthcare eco-system with a FY25 revenue of ₹ 16,300 crores ($1.9 billion) in FY25,' Apollo Hospitals said in a release. The business will comprise - Apollo 24/7, the digital health platform; the offline pharma distribution of AHL; Third party pharma distribution of Keimed; and telehealth services of AHEL. 'The combination of businesses is anticipated to generate substantial synergies, and the New Co is expected to achieve a revenue run rate of ₹ 25,000 crores ($2.9 billion) by FY27,' the company added. Upon the effectiveness of the Scheme, the new entity will become an Indian Owned and Controlled Company (IOCC) and will apply for listing on the stock exchanges, it added. The listing is expected within 18-21 months, the healthcare major said. For every 100 shares of Apollo Hospitals Enterprise, the shareholders of Apollo Hospitals Enterprise will receive 195.2 shares of NewCo, enabling their direct participation in the value unlock. Upon becoming an IOCC, the entity also proposes to consolidate the front-end pharmacy business by acquiring the remaining 74.5% stake in Apollo Medicals Pvt Ltd (AMPL), which owns 100% of Apollo Pharmacies Limited (APL), it said. Apollo Hospitals Enterprise will retain a 15% stake in the 'NewCo' to ensure an integrated, seamless, and comprehensive healthcare offering across the patient lifecycle, it added. Apollo Hospitals Enterprise MD Suneeta Reddy said the proposal enables the healthcare provider's shareholders to gain direct shareholding to country's largest omni-channel pharmacy and digital health platform. Apollo Hospitals share price has risen 9% in one month, and more than 12% in three months. The stock is up just 1% on a year-to-date (YTD) basis, but has rallied 22% in one year. Apollo Hospitals shares have delivered mutlibagger returns of 466% in the past five years. At 10:15 AM, Apollo Hospitals share price was trading 3.28% higher at ₹ 7,480.00 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
30-06-2025
- Business
- Time of India
Apollo Hospitals to hive-off pharmacy, digital health businesses
Apollo Hospitals Enterprise on Monday said its board has approved separate listing of its omnichannel pharmacy and digital health businesses within 18-21 months, as part of reorganisation exercise to unlock value. The board of directors of Apollo Hospitals and Apollo HealthCo, a subsidiary of the the healthcare major, have accorded in-principle approval for the composite scheme of arrangement. The scheme entails the demerger of the Omni Channel Pharma and Digital Health business -- comprising the telehealth business of Apollo and its investment in AHL (Apollo HealthCo Limited) -- into a new entity. Following the demerger, the scheme provides for the amalgamation of AHL with the new entity. It would subsequently be followed by the amalgamation of Keimed Pvt Ltd , India's leading wholesale pharmaceutical distributor, with NewCo (new entity). Live Events The scheme creates a formidable omnichannel pharmacy distribution and digital health platform leader in India, with stated plans to achieve Rs 25,000 crore revenue by FY27, Apollo Hospitals Enterprise said in a regulatory filing. Upon the effectiveness of the Scheme, the new entity will become an Indian Owned and Controlled Company (IOCC) and will apply for listing on the stock exchanges, it added. The listing is expected within 18-21 months, the healthcare major said. Upon becoming an IOCC, the entity also proposes to consolidate the front-end pharmacy business by acquiring the remaining 74.5 per cent stake in Apollo Medicals Pvt Ltd (AMPL), which owns 100 per cent of Apollo Pharmacies Limited (APL), it said. Apollo Hospitals Enterprise Ltd (AHEL) will retain 15 per cent stake in the 'NewCo' to ensure an integrated, seamless, and comprehensive healthcare offering across the patient lifecycle, it added. "The omnichannel pharmacy business and integrated digital healthcare ecosystem will be a unique model to enable access to high-quality healthcare for millions of Indians," Apollo Hospitals Group Chairman Prathap C Reddy said. Apollo Hospitals Enterprise MD Suneeta Reddy said the proposal enables the healthcare provider's shareholders to gain direct shareholding to country's largest omni-channel pharmacy and digital health platform. "The new entity, once integrated, will be a truly customer-focused healthcare leader, with capabilities across the value chain. Delivering medicines seamlessly from 7000+ physical stores, online delivery platform serving over 19,000 pincodes, with Keimed ensuring supply chain integrity, our aspiration is that we will serve over 100 million Indians," Apollo HealthCo Executive Chairperson Shobana Kamineni said. Shares of Apollo Hospitals Enterprise ended 0.87 per cent down at Rs 7,242.75 apiece on BSE. Economic Times WhatsApp channel )
Time of India
05-06-2025
- Business
- Time of India
ICICI Securities maintains Add on Apollo Hospitals, raises target price to Rs 7,500
Apollo Hospitals Enterprise key products/revenue segments include HealthCare Services and Other Operating Revenue for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5653.30 crore, up 1.12% from last quarter Total Income of Rs 5590.70 crore and up 13.70% from last year same quarter Total Income of Rs 4972.00 crore. The company has reported net profit after tax of Rs 404.00 crore in the latest quarter. The company's top management includes C Reddy, Chatterjee, Bijapurkar, Doraiswamy, Mrs.V Kavitha Dutt, Mittal, Reddy, Reddy, Reddy, Mr.M B N Rao. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 crore shares outstanding. Live Events Investment Rationale ICICI Securities has increased the revenue/EBITDA/PAT estimates of Apollo Hospitals Enterprise by ~1%/6%/7% for FY26 and 6%/13%/15% for FY27, factoring in faster growth and better margins in pharmacy business. The stock currently trades at EV/EBITDA of 27.4x FY26E and 22.3x FY27E. The brokerage maintains its ADD rating with a higher target price of Rs 7,500 (earlier Rs 6,700). ICICI Securities values the hospital business at 25x FY27E EV/EBITDA, HealthCo at 2.5x FY27E EV/sales and AHLL at 18x FY27E EV/EBITDA. Downside risks include higher competition in pharmacy business; and slower occupancy ramp up at new hospitals. Promoter/FII Holdings Promoters held 29.34 per cent stake in the company as of 31-Mar-2025, while FIIs owned 42.74 per cent, DIIs 22.1 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has maintained an Add call on Apollo Hospitals Enterprise with a revised target price of Rs 7,500 (earlier Rs 6,700). The current market price of Apollo Hospitals Enterprise is Rs 6798. Apollo Hospitals Enterprise, incorporated in 1979, is a Large Cap company with a market cap of Rs 97953.30 crore, operating in the Hospitals & Allied Services Hospitals Enterprise key products/revenue segments include HealthCare Services and Other Operating Revenue for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5653.30 crore, up 1.12% from last quarter Total Income of Rs 5590.70 crore and up 13.70% from last year same quarter Total Income of Rs 4972.00 crore. The company has reported net profit after tax of Rs 404.00 crore in the latest company's top management includes C Reddy, Chatterjee, Bijapurkar, Doraiswamy, Mrs.V Kavitha Dutt, Mittal, Reddy, Reddy, Reddy, Mr.M B N Rao. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 crore shares Securities has increased the revenue/EBITDA/PAT estimates of Apollo Hospitals Enterprise by ~1%/6%/7% for FY26 and 6%/13%/15% for FY27, factoring in faster growth and better margins in pharmacy business. The stock currently trades at EV/EBITDA of 27.4x FY26E and 22.3x FY27E. The brokerage maintains its ADD rating with a higher target price of Rs 7,500 (earlier Rs 6,700). ICICI Securities values the hospital business at 25x FY27E EV/EBITDA, HealthCo at 2.5x FY27E EV/sales and AHLL at 18x FY27E EV/EBITDA. Downside risks include higher competition in pharmacy business; and slower occupancy ramp up at new held 29.34 per cent stake in the company as of 31-Mar-2025, while FIIs owned 42.74 per cent, DIIs 22.1 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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Business Standard
04-06-2025
- Business
- Business Standard
Bangladesh unrest cuts India's medical tourism revenue by up to 35%
Political unrest in Bangladesh, combined with the rise of a government seen as unfriendly to New Delhi and deteriorating bilateral ties, appears to have dealt a blow to India's medical tourism sector. Medical tourism revenues from Bangladeshi patients have reduced by 30–35 per cent in FY25. Typically, Bangladesh accounts for 70–75 per cent of the medical visas issued by India, analysts said. Anuj Sethi, Senior Director, Crisil Ratings, told Business Standard that 'Medical tourism revenues from patients in Bangladesh arriving in India for medical treatment is estimated to have reduced by around 30–35 per cent in fiscal 2025 due to regime change and political unrest in Bangladesh, mainly in the first half of the year.' Hospital majors such as Apollo Hospitals Enterprise and Manipal Hospitals took a hit in their FY25 revenue due to the drop in footfall from Bangladeshi patients who usually visit centres in eastern and southern India. Apollo saw a significant fall in revenues from Bangladeshi patients—from ₹80 crore last year to ₹30 crore in Q4FY25. Aashita Jain, analyst with Nuvama Institutional Equities, said the impact on Apollo's revenue was around 1.5 per cent in FY25, and around 2 per cent in Q4FY25. Manipal Hospitals too saw a major decline in patients from West Bengal and Bangladesh, dropping by nearly 75 per cent compared to previous years. 'Earlier, around 10,000 medical visas were being issued per month; however, this has now been reduced to only 800–900 priority medical visas. Additionally, 19 visa centres in Bangladesh have been closed by the Indian High Commission, further impacting patient inflow,' said Karthik Rajagopal, Group COO, Manipal Hospitals. The decline in Bangladeshi patients is significant, as 70–75 per cent of medical visas issued by India are to Bangladeshi nationals, ICRA highlighted. Mythri Macherla, Vice President and Sector Head, Corporate Sector Ratings, ICRA, said the proportion of revenues from international patients ranges between 3–9 per cent for most listed hospitals. In CY2024, overall medical tourist inflow to India dipped to 625,000 from 659,000 in CY2023. However, compared to 2022 (when 475,000 medical tourists visited India), the numbers are up 32 per cent, showed data available with the Bureau of Immigration. "There has been a drop and it has sustained for some time. The fourth quarter of FY25 witnessed the biggest drop that we have seen so far. We are continuing to see difficult cases like paediatric cancer patients from these countries, as they are getting medical visas to travel. However, a large number of patients certainly dropped off," said Madhu Sasidhar, President and Chief Executive Officer, Apollo Hospitals Enterprise (AHEL). Bangladesh has long been the largest source of medical tourists to India, with a 48 per cent year-on-year surge bringing 449,570 patients in 2023 alone. For the entire financial year, AHEL witnessed a drop of ₹100 crore in revenue from Bangladeshi patients. In FY24, the company's Bangladesh share of medical tourism was ₹320 crore, which dipped to around ₹220 crore in FY25. For Apollo, the share of international patients is around 6 per cent of its revenue. Sources said the industry is seeing a rise in patients from Africa and Southeast Asian countries such as Indonesia, Timor-Leste and the Philippines, in addition to advanced economies. Another industry source said Pakistani hospitals are now trying to woo Bangladeshi patients. However, there seems to be light at the end of the tunnel. As Sethi pointed out, 'Process of granting visas for medical tourism for patients from Bangladesh is gradually normalising and we expect the process will take 6–8 months in fiscal 2026 to revert to normalcy. Hence, revenues for private hospitals from medical tourists coming from Bangladesh will be impacted this fiscal too.' Footfall from other countries is also on the rise. "Despite the geopolitical tensions which led to a decline in footfalls from patients from Bangladesh, some listed hospitals reported improvement in international patient revenues in FY2025 led by higher footfalls from other countries and increasing ARPOB,' Macherla pointed out. For example, Max Healthcare saw a 28 per cent growth in revenue from international medical tourists in Q4 despite a fall in patients from Bangladesh. Bangladesh accounts for only 5 per cent of Max's international patients. Abhay Soi, Chairman and Managing Director, Max Healthcare, said in the post-results analysts' call that they have had more than 25 per cent growth in the international medical tourist business for a 'long period of time' and the 28 per cent growth is 'in spite of these bottlenecks'. Going forward, ICRA expects the proportion of international patient revenues to remain largely range-bound and expects the overall revenues from international patients to grow at a much slower pace as compared to overall revenues till the geopolitical tensions are resolved.
