Improving execution to deliver healthy gains for Apollo Hospitals

Lower debt, divestments, and reduction of promoter pledge are other triggers

While investors have lost money in the health care space, Apollo Hospitals has been an exception. Since the start of the current financial year, it has gained 14 per cent, while the BSE Healthcare space has shed over 20 per cent. Even as most companies in the pharma and health care space were struggling on the revenue front as evidenced by the recent April-June quarter results, Apollo Healthcare posted 17 per cent growth in revenue over the year-ago quarter.

There are multiple reasons for the Street’s optimism. The performance of established hospitals and the ramp-up of new ones is one trigger.