Q3FY23 Preview: Apollo Hospitals Enterprise: Revenue seen at Rs 43,817 million, PAT at Rs 2,237 million

Result date: 14^th February, 2023

Recommendation: Buy

Target price: Rs 5,150

Apollo Hospitals Enterprise could post revenue growth of 20% over the year-ago quarter and 3% sequentially. Store addition and higher sales from existing stores could drive strong growth in pharmacy revenue.

EBITDA margin though could decline both over the year-ago quarter and sequentially during the quarter. Analysts at IIFL Securities expect Apollo’s growth momentum to sustain across all verticals, thereby leading to 17% EBITDA CAGR for the company over FY22-25.

Profit After Tax (PAT) could decline 2% over the year-ago quarter, but grow 10% sequentially.

Important management insights to watch out for:

• Update on stake dilution in Healthco
• Momentum of services provided on online Apollo 24/7 platform

Source: IIFL Research