Q1 may be a blip for Apollo Hospitals; analysts see 25% upside

Analysts positive on the healthcare major with target prices ranging between Rs 5,000 - Rs 5,250

Apollo Hospitals disappointed the markets with the April-June quarter results for the 2022-23 financial year (Q1FY23) but analysts remain positive. Revenues were more or less in-line with Street expectations, but margins have been squeezed, which is a negative surprise. 

The stock has reacted by losing 11 per cent in the last four sessions. Revenues increased quarter-on-quarter (QoQ) to Rs 3,796 crore while earnings before interest, tax, depreciation and amortization (ebitda) was at Rs 491 crore, up 7 per cent QoQ with a margin of just under 13 per cent. 

The profit after tax (PAT), adjusted for extraordinary items, was