Apollo Hospitals Strong Financial Growth: A Look at India’s Leading Healthcare Provider
Business and Industry Overview:
Apollo Hospitals started in 1983 in Chennai, India, by Dr. Prathap C. Reddy. It was the first private hospital of its kind in India. It changed healthcare in India by offering better care and treatments. Today, Apollo has 71 hospitals in India. It is the biggest private hospital chain in the country. These hospitals are in big cities like Chennai, Hyderabad, Bengaluru, Kolkata, Delhi, and Ahmedabad. Apollo offers care for many problems like heart disease, bone problems, brain issues, and cancer. Apollo is known for treating serious health problems. They use the latest technology and have doctors from all over the world. Many people trust Apollo for good care. Apollo is growing. They plan to add over 2,000 more beds in their hospitals by 2027. This will help more people get care. Apollo also helps train doctors, nurses, and healthcare workers. They also do research to find better treatments. In 2024, Apollo made 63% more money than the previous year. This is because more people are using their services. Apollo’s goal is to give the best care, keep patients safe, and use technology to improve health. They want to make healthcare affordable for everyone in India and other countries.
Latest Stock News:
Apollo Hospitals’ stock dropped by 6.7% on April 11, 2025, because the overall stock market went down. This drop was not due to problems with Apollo itself. Despite this, Apollo is still one of the biggest and most important healthcare companies in India. Apollo is planning to grow a lot in the next few years. They are going to invest ₹6,000 crore to add 3,500 new hospital beds over the next five years. This will help Apollo meet the growing demand for healthcare. In the first phase, they will spend ₹2,880 crore to add 1,737 beds in big cities like Pune, Kolkata, Hyderabad, and Gurgaon. They plan to complete this by 2026. In the second phase, Apollo will add 1,775 more beds in cities like Chennai, Mumbai, Varanasi, and Lucknow. This will help more people in both big and small cities get better healthcare. Apollo’s plan to add more beds shows that the company is working to make healthcare easier for more people in India. Even though their stock went down recently, Apollo’s growth plans show they have a strong future.
Potentials:
Apollo Hospitals has big plans for the future. They want to spend ₹6,100 crore to grow and help more people. They plan to add 3,500 new beds in 11 places across India by 2026. This will allow Apollo to treat more patients and give them better care. Apollo will open five new hospitals in big cities like Mumbai, Chennai, Gurgaon, Varanasi, and Lucknow. These hospitals will have over 1,400 beds. They will also make their current hospitals bigger in cities like Pune, Kolkata, and Hyderabad. This will provide more space for patients and doctors. Apollo will spend ₹1,700 crore for this expansion. Out of this, ₹1,300 crore will be spent in the next year. This shows that Apollo is serious about improving healthcare in India.
Apollo is also improving their online services. They want to make it easier for people to talk to doctors. Through telemedicine and online consultations, people can talk to doctors from home. This will help people who cannot visit a hospital easily. These plans will help Apollo provide better healthcare. It will also help treat more people across India. Apollo is working hard to make healthcare available for everyone.
Analyst Insights:
- Market capitalisation: ₹ 99,147 Cr.
- Current Price: ₹ 6,896
- 52-Week High/Low: ₹ 7,545 / 5,691
- Stock P/E: 75.6
- Dividend Yield: 0.24%
- Return on Capital Employed (ROCE): 15.1%
- Return on Equity: 13.3%
Apollo Hospitals is a strong company with solid financial growth. Over the last five years, its profits have grown by 34.3% each year on average. This shows it can keep growing in the future. The company has been able to increase both its revenue and profit margins, even during difficult times. In Q4 FY24, Apollo Hospitals reported a 51.77% increase in net profit, reaching ₹379 crore. This is a big jump and shows the company is still doing well despite challenges. The operating profit margin is 14%, which means Apollo is good at controlling its costs. Apollo’s return on capital employed (ROCE) is 15.1%, which shows it uses its money effectively to make more profit. Its return on equity (ROE) is 13.3%, which means it uses shareholders’ money well to earn profits. The company has a large network of 10,134 beds across India and abroad. This helps it cover a large part of the healthcare market. It also helps the company make more revenue. The healthcare industry is growing, and Apollo is in a good position to take advantage of this.
Apollo Hospitals also pays a dividend of 22.6%. This is attractive for investors who want regular income. So, Apollo is a good choice for investors looking for both growth and income.
The company’s price-to-earnings (P/E) ratio is 75.6, which is higher than many other companies. This shows that investors expect Apollo to keep growing. Even with the high P/E ratio, it makes sense because Apollo is a leader in the healthcare field. Its high-margin services, like specialized care and retail drugs, are doing well.
Overall, Apollo Hospitals is a strong choice for investors. It has shown good financial growth, is well-managed, and is a leader in the healthcare market. Investors looking for long-term growth in healthcare should consider Apollo Hospitals.
