Q2 performance shows Apollo Hospitals Enterprise in the pink of health

Most analysts are positive but target prices indicate limited upside

The September quarter performance of Apollo Hospitals Enterprise (AHEL) was better than expected with a rise in the average revenue per occupied bed (ARPOB) and a lower average length of stay (ALOS). The company also acquired a 65 per cent stake in the 180-bed Excelcare Hospital in Guwahati at an enterprise value of Rs 210 crore, and it’s seeking to acquire a 300-bed facility in Mumbai in the next few years and 300 more beds in Bengaluru by acquisition in the next two years.

The long-term guidance included an estimate of addition of around 400 pharmacies annually and around 20