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Investing.com - ICICI Securities downgraded Apollo Hospitals (APHS:IN) from Add to Hold on Thursday, while maintaining a price target of INR8,000.00.
The downgrade comes despite Apollo Hospitals reporting Q1FY26 EBITDA and PAT results that exceeded ICICI Securities’ expectations, with Healthco margins improving 130 basis points year-over-year to 3.8%.
Apollo Hospitals is proceeding with plans to expand its bed capacity by approximately 42% (adding 4,300 beds) over the next 3-4 years, with 700 beds scheduled for addition in FY26 and 877 beds in FY27.
Management has indicated its aim to maintain double-digit growth in its hospital business with stable margins of 24-25% in FY26, according to the ICICI Securities report.
The combined pharmacy business of Apollo (Healthco+Keimed) is expected to register a 20-25% revenue CAGR over FY25-27E, with cost reductions and synergies potentially boosting margins by 370 basis points to approximately 7% in FY27E, with the merged entity anticipated to be listed on stock exchanges by Q4FY27.
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