Apollo Hospitals gains on BofA-Merrill 'buy' rating

Reuters Market Eye - Shares in Apollo Hospitals Enterprise Ltd close 2 percent higher after broker Bank of America-Merrill Lynch starts coverage on the healthcare firm with a "buy" rating and a target price of 1,136 rupees.

BofA-Merrill says it expects Apollo Hospitals' sales to grow 21 percent over fiscal years 2014-2018 and profit after taxes by 26 percent during the same.

"With strong execution track record, Apollo is a multi-year structural growth story of under penetrating market, increasing affluence, demand for quality healthcare and strong brand equity," the investment bank said in a note dated Monday.

(Reporting by Abhishek Vishnoi)