BackApollo Hospitals shares surge for second straight day, hit new high
Apollo Hospitals Q1 net profit came at ₹489 crore, consolidated revenues stood at ₹3,760 crore
PremiumShares of Apollo Hospitals surged more than 8% to ₹4,718 per share, gaining for the second consecutive day. The stock has seen uptrend after reporting its quarterly earnings for the first quarter of the current fiscal in which the healthcare major reported profit as compared to loss in the year-ago quarter.
Apollo Hospitals Enterprise posted consolidated net profit at ₹489 crore for the first quarter ended June 30. The healthcare major had reported a net loss of ₹208 crore in the April-June quarter of 2020-21. Its consolidated revenues for the June 2021 quarter stood at ₹3,760 crore as compared with ₹2,171 crore in the Q1 of the previous fiscal.
Apollo Hospitals Group Chairman Prathap C Reddy said, "The first quarter of the new financial year saw Apollo Hospitals facing the COVID-19 challenge anew as the second wave swept across the country."
He added that it was to the credit of "our experience over the last year and the dedication of our doctors, nurses and paramedical staff that we emerged through the second wave successfully saving lives and ensuring that no patient suffered for want of care".
Apollo Hospitals stock has gained nearly 178% in a year and around 95% in 2021 (year-to-date). Apollo Hospitals Enterprises’ Q1FY22 performance was better than analysts' estimate led by strong recovery in occupancies, stock piling by pharmacy customers during 2nd covid-19 wave and incremental revenue from vaccination. However, margins were low due to lower margins in vaccination business and costs relating to 24x7 initiative.
Brokerage and research firm ICICI remains positive on Apollo Hospital's long-term outlook considering its strong brand and pan-India presence in the hospital segment, margin expansion potential and aggressive focus on creating digital network for pharmacy, doctor consultation, clinics and diagnostics. It has maintained its ‘Add’ rating on the stock with target price of ₹4,312 per share (which has already been hit).
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