Stocks of Apollo Hospitals hit a record high of 52 weeks, with Q3 results jumping on the Stocks 12%, buy it or not?

Apollo Hospitals has performed better than expected in the third quarter of FY 2020-21. Due to this, the stock of the company witnessed a huge surge in the stock market today and its shares were trading at a price of Rs 3066 at 2 pm with an increase of 11.56%. Apollo Hospitals stocks hit their 52-week record high on strong Q3 returns. Shares of the company reached an all-time high of Rs 3089.90 today, while they opened at Rs 2777 today, while the shares of the company closed at Rs 2745 on Friday.

Apollo Hospitals reported a net profit of 49.14% in the December quarter and the company reported a net profit of Rs 134.16 crore. Whereas in the same quarter of the last financial year, the company had net profit of only Rs 89.95 crore. The company cut its expenses this quarter, due to which its net profit has increased. However, the company’s revenue from operations declined and stood at Rs 2,759.84 crore as against Rs 2,911.74 crore in the December quarter last year.

Company expenses decreased

In Q3 Apollo Hospitals has cut spending drastically. The company’s total expenditure in the same period last year was Rs 2,776.46 crore, which was reduced to Rs 2,595.54 crore in the third quarter of this financial year. Apollo Hospitals Chairman Prathap C Reddy said that after the rate of Kovid infection was low, we shifted to non-Kovid patients. Let us tell you that the company recently launched a QIP of Rs 1170 crore which was subscribed 12.5 times.

What to do investor

Stock market brokerage firms Joppy Morgan, Goldman Sachs and Credit Suisse are positive on Apollo Hospitals’ December quarter results. Jopi Morgan gave a target price of Rs 3120 for its stocks and said that the investment in the company would strengthen it in eastern and northern India. At the same time, Credit Suisse has given a target price of Rs 3160 per share of the company’s stocks. Also, the firm has increased Apollo Hospitals earnings per share (EPS) from 1.9 times to 6.1 times. Apart from this, Goldman Sachs has given it a buy rating and recommends buying it with a target of Rs 3020. The firm has increased EBITDA estimates of the stocks of Apollo Hospitals by 7%.

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