Apollo Hospitals: Analysts tracking stock share key triggers after Q4 results; Check revised price targets

Shares of Apollo Hospitals Enterprises Ltd. will be in focus on Monday, June 2, following the company's March quarter earnings, which were announced after market hours on Friday.

Analysts have largely maintained their views on the stock post the Q4 results. While Nomura has a 'Neutral' rating, Morgan Stanley, Citi, and Goldman Sachs continue to maintain 'Buy' ratings on Apollo Hospitals.

Nomura has a price target of ₹6,856. The brokerage said that Q4 revenue was in line with expectations, while EBITDA was 5% above estimates, driven by better-than-expected EBITDA margins in the Healthcare Services segment.

However, compared to consensus estimates, EBITDA missed by 2.5%.

Net profit came in 19% higher than estimates, supported by stronger-than-expected other income and a lower tax rate.

Morgan Stanley has an 'Overweight' rating on Apollo Hospitals but slashed its price target to ₹8,058 per share. The brokerage said Q4FY25 earnings were in line with expectations.

The foreign brokerage is positive on Apollo's integrated, patient-centric, and technology-enabled healthcare ecosystem.

It added that successful execution, including the 24x7 platform achieving break-even, the integration of Keimed, and the addition of over 3,500 beds, should drive strong shareholder returns and help differentiate Apollo's franchise from its peers.

Citi also has a 'Buy' rating on Apollo Hospitals, with a price target of ₹8,260.

The brokerage said that Q4 performance was largely in line. Consolidated revenue and EBITDA grew 13% and 20% year-on-year, respectively. EBITDA excluding 24x7 costs stood at ₹930 crore, up 18% YoY.

According to Citi, a decline in patients from Bangladesh impacted Healthcare Services (HCS) revenue growth, which stood at 10% YoY. However, HCS EBITDA grew by 16% YoY, with a 120 basis points improvement in margins.

In the HealthCo segment, offline pharmacies continued to perform well, with revenue and EBITDA rising 17% and 21% YoY, respectively. However, higher ESOP charges weighed on online business profitability.

Goldman Sachs has a 'Buy' rating on Apollo Hospitals, with a price target of ₹7,850.

The brokerage said Q4 results were slightly below its estimates. Nonetheless, Apollo reiterated its key growth drivers across business verticals —

(i) Hospitals: Topline growth driven by higher occupancy, bed expansion, and an improved case/payor mix.

(ii) HealthCo: Targeting over 600 new store additions every year; Apollo 24x7 expected to generate new revenue streams and achieve break-even in 2–3 quarters.

(iii) AHLL (Apollo Health & Lifestyle Ltd.): The diagnostics business is expected to align more closely with peer growth and margin profiles over the medium term.

Shares of Apollo Hospitals Enterprises Ltd. had ended near the day's low on Friday ahead of the results announcement, declining 0.53% to ₹6,886.

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