X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Apollo Hospitals: Business overview - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 8, 2004

    Apollo Hospitals: Business overview

    Operating in one of the sunrise industries of the Indian economy, i.e. healthcare, Apollo Hospitals is the pioneer of the concept of organised healthcare. The group operates a chain of hospitals with total bed strength of nearly 6,000 beds (owned and managed). Apollo Hospitals group now has the third largest number of hospital beds in the world (managed as well as owned). The company also operates a large pharmacy chain spread mainly in south India.

    Apollo Hospitals is well positioned to capitalize on the potential of this sector. As mentioned above, the company is a pioneer in its field and it has build up its brand over the years and spread its reach across the country. The company has also entered into the pharmaceutical retailing business, realizing its obvious synergies with the core hospital business.

    Apollo Hospitals is aggressively moving towards the managed hospitals model, where the company provides management and technical support to other hospitals for a fee. Setting up new hospitals is very capital intensive and hence the shift to the managed hospital model, where the operating margins are much better. The company has expanded operations in to pharma retailing also, however, operating margins of this business, being relatively lower, has taken a toll on overall margins.

    FY03 was no different for the company. As like previous years, margins have fallen (18% compared to 19% in FY02) due to higher contribution to the topline from the low margin pharma retailing business. However, what was noticeable about the company's performance in FY03 was the fact that both its pharma retailing (25%) and hospitals businesses (15%) continued to grow steadily. Net profits consequently improved by 11% in FY03. In FY04, so far (first half), the company has reported a 10% growth in its topline while its bottomline has grown by a better 26% mainly due to reduced interest costs as well as better control over expenses.

    At Rs 179 the stock is trading at a P/E of 19.3x its annualised 1HFY04 earnings. Apollo Hospitals is in a unique position to take advantage of the expected boom in the healthcare sector waiting to happen in the country. With the expected growth of the health insurance services market in the country, the healthcare sector is expected to benefit immensely. Also, due to the cheaper costs of healthcare services in the country, the group is in a good position to take advantage of health tourism business coming to India.

     

     

    Equitymaster requests your view! Post a comment on "Apollo Hospitals: Business overview". Click here!

      
     

    More Views on News

    Securities & Intelligence Services Ltd. (IPO)

    Jul 31, 2017

    Should you subscribe to the IPO of Securities & Intelligence Services Ltd?

    Why Super Investors are Underperforming in This Market (The 5 Minute Wrapup)

    Jul 8, 2017

    If Super Investors can wait for the right pitch, so can you.

    Tejas Networks Ltd. (IPO)

    Jun 14, 2017

    Should you subscribe to the IPO of Tejas Networks Ltd?

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    A Trader's Nightmare. A Business Owner's Delight. (The 5 Minute Wrapup)

    May 19, 2017

    Not all small-cap investors see themselves as traders. Some see themselves as business owners.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    APOLLO HOSPITALS SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK APOLLO HOSPITALS

    • Track your investment in APOLLO HOSPITALS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON APOLLO HOSPITALS

    APOLLO HOSPITALS - FORTIS HEALTHCARE COMPARISON

    Compare Company With Charts

    COMPARE APOLLO HOSPITALS WITH

    MARKET STATS