Q3 Results of Apollo Hospitals: Stock Jumps 10%; Hits 52-Week High
On Monday, Apollo Hospitals' shares mounted nearly 10 percent to hit its 52-week high after the company reported better than expected December quarter earnings. It posted a 49.14 percent growth in consolidated net profit at Rs 134.16 crore in Q3, mainly because of a reduction in expenses. The stock rose as much as 9.7 percent to its 52-week high of Rs 3,016.25 per share on the BSE.
Brokerages were also very bullish on the stock post the results on strong margin lifting the sentiment further. JPMorgan, Goldman Sachs and Credit Suisse were all positive on the stock -
- JP Morgan was overweight on the stock with a target at Rs 3,120 per share. It said that Q3 was another quarter of margin beat as the focus remained on non-COVID recovery and digital space.
- Credit Suisse, on the other hand, had an 'outperform' rating on the stock with a target at Rs 3,160 per share. It said that the Q3 beat was due to a strong margin in hospitals. It also lifted the firm's FY21 EPS estimate to Rs 6.1 from Rs 1.9 earlier.
- Goldman Sachs retained a 'buy' call on the stock with a target at Rs 3,020 per share. It raised the stock's FY21023 EBITDA estimates by up to 7 percent.
"The third quarter of the year saw robust growth as we increased focus on non-COVID-19 patients, especially non communicable diseases (NCDs), which pose a substantial risk to the health of the people," Apollo Hospitals Group Chairman Prathap C Reddy said post the earnings.
The company recently also concluded qualified institutional placement (QIP) for Rs 1,170 crore at Rs 2,511 per share, and the issue was oversubscribed 12.5 times.