Business Standard

Margin expectation fires up Apollo Hospitals, stock gains on strong results

With capex cycle coming to an end and occupancies increasing, operating profit is expected to double over next three years

Apollo Hospital
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Ram Prasad Sahu
The Apollo Hospitals stock has gained about 19.3 per cent in the past two trading sessions on strong results and improving profitability across its four key segments of mature hospitals, new hospitals, pharmacies and Apollo Health and Lifestyle (clinics). Prior to the recent gains, the stock had seen a steep correction on concerns of regulatory oversight. In addition, significant capacity increase over the past three years was weighing margins, which fell 400 basis points (bps) over FY14-18. 

In the past four years the company has added about 2,000 beds — a third of its total capacity. Analysts at Spark Capital

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