InvestorQ : Apollo Hospitals has been looking solid in the market and it is the largest healthcare player. Can I buy the stock at current price of Rs.1235?
Priyanka N made post

Apollo Hospitals has been looking solid in the market and it is the largest healthcare player. Can I buy the stock at current price of Rs.1235?

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NISHA Nayak answered.
3 years ago
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Apollo Hospitals has been in the healthcare business for over 25 years now and has been able to set the highest standards of healthcare in India at a competitive price. For the latest March quarter, Apollo Hospitals reported a 29% growth in net profits to Rs.77 crore. Revenues for the quarter were also higher by 15% at Rs.2167 crore. The company has reported nearly 30% growth in net profits for the full year. Over the last 3 years the company has been spending heavily on capital investments and that is almost completed so the benefits will be visible in the coming years. That should work in favour of the stock.

In terms of pure P/E valuation the stock is quoting at a P/E of 50 against the industry average of 42X but that is understandable considering the premium positioning that it provides. You can look to buy the stock but take a long term perspective of at least 2-3 years because that is the time it will take to play out. But surely, Apollo is a good play on the healthcare potential in India.

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