Apollo Hospitals Announces Q3 net rises 48.69%

[komal]

Apollo Hospitals Enterprise has announced its un-audited results for the quarter ended December 31, 2009.

The company has posted a net profit of Rs 43.91 crore for the December 31, 2009 quarter as compared to Rs 29.53 crore for the December 31, 2008 quarter, up by 48.69%

Total Income has increased from Rs 380.50 crore for the quarter ended December 31, 2008 to Rs 491.52 crore for the quarter ended December 31, 2009, a rise of 29.17%.

[sunil]

Edelweiss has issued a BUY recommendation with the following note from the 30 page report,

Our SOTP based target price of INR 600/share is based on DCF value of hospitals (INR 520/share) and retail pharmacies (INR 60/share). We value investment in
associates at INR 16 per share. APHS is trading at premium valuation to Asian peers, which is justified given its competitive positioning and superior earrings
growth. We believe ROCEs should expand on current initiatives into Reach and leased model for expansion, leading to valuation re-rating. Hence, we initiate
coverage on stock with ’BUY’ recommendation.