Apollo Hospitals will be in focus after global brokerages issued mixed views on the stock following the company’s Q4FY25 earnings.
Nomura maintained a Neutral rating with a target price of ₹6,856 per share. The brokerage highlighted that Q4 revenue was in-line with expectations, while EBITDA came in ahead of estimates. It noted higher-than-estimated EBITDA margin in the Healthcare Services segment. However, when compared to the street consensus, EBITDA was 2.5% below estimates. On the positive side, PAT came in 19% ahead of estimates, aided by higher other income and a lower tax rate.
Morgan Stanley (MS) retained an Overweight call, while cutting its target to ₹8,058 per share. It continues to favour Apollo’s integrated, patient-centric, and technology-supported healthcare ecosystem. MS highlighted successful integration efforts, including 24×7 breakeven performance and the addition of Keimed. Importantly, it expects the addition of over 3,500 new beds to drive strong shareholder returns and help differentiate Apollo’s franchise from peers going forward.
Citi maintained a Buy rating and set the highest target among peers at ₹8,260 per share. The brokerage noted that Q4 results were largely in-line, with consolidated revenue and EBITDA growing 13% and 20% YoY, respectively. EBITDA excluding 24×7 costs stood at ₹930 crore, up 18% YoY. Citi flagged that a decline in patients from Bangladesh impacted Healthcare Services (HCS) revenue growth, though HCS EBITDA grew by 16% YoY (+120 bps YoY margin improvement). Meanwhile, offline pharmacies continued to perform well under the HealthCo segment, even though higher ESOP charges impacted online profitability.
Overall, brokerages remain broadly positive on Apollo’s core healthcare growth and expansion strategy, with key monitorables being margin trends, new bed additions, and the performance of the 24×7 and HealthCo platforms.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
