Morgan Stanley has reiterated an ‘Overweight’ rating on Apollo Hospitals, setting a target price of ₹8,159 per share, following a strong Q3 performance. The company reported consolidated revenue growth of 15% year-on-year in its Apollo Healthco and Apollo Health & Lifestyle (AHLL) segments, while healthcare services revenue increased by 13% YoY.
A key highlight for Apollo Hospitals is its collaboration with Microsoft to advance AI-driven healthcare solutions, with a specific focus on disease progression and genomics. The hospital chain aims to leverage artificial intelligence to enhance patient outcomes and drive efficiency in diagnostics and treatment planning.
Additionally, Apollo Hospitals has seen a reduction in 24/7 cash losses, although growth in Gross Merchandise Value (GMV) has moderated. The company also plans to start retail insurance sourcing in Q4FY25, a move expected to bolster its revenue streams and further strengthen its financial position.
With healthcare demand continuing to rise, Morgan Stanley believes that Apollo Hospitals is well-positioned to sustain its growth trajectory, backed by innovation and expanding service offerings. The brokerage maintains a positive long-term outlook on the stock, citing strong operational performance and strategic initiatives aimed at digital transformation.
