Street mavens cheer Apollo Hospitals’ plan

Mumbai: Brokerages have raised their target price on Apollo Hospitals Enterprise by up to 21% after the company announced a group revamp. Analysts said the formation of Apollo Health could unlock value, lifting the stock to its 52-week high of ₹3,464.95 on Friday. The stock ended up over 7% at ₹3,438.70 on Friday.“Digital health space foray will help APHS (Apollo Hospitals) cross-sell its services to a larger population. APHS has headroom to achieve accelerated growth, without further large capital investments,” said Elara, which has raised target price on Apollo Hospitals tos ₹3,700 from ₹3,200. Edelweiss and Nomura have also retained buy rating while Kotak Institutional and ICICI Securities have retained add recommendation. "Apollo Hospitals Enterprise is leveraging its physical healthcare infrastructure and patient/doctor connect to transform into a pan-India health tech digital play. Unlocking this value and vaccine upside should benefit the stock in the near term," said Morgan Stanley. CLSA said the narrative of unlocking value through restructuring healthcare tech platform is strong but the business is largely a dominant offline play and will see a huge cash burn to gain scale. It has retained sell rating on rich valuation and execution challenges.

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