Moneycontrol Ideas For Profit: Apollo Hospitals | CNBC TV18

[00:00:00]Let's get you some ideas for profit.

[00:00:01]Today we do have our colleague from Moneycontrol Pro, Lekha Bhatlani Jamnani, who's joining in with a stock.

[00:00:08]>> Uh yes, thanks. So my stock pick is Apollo Hospitals, which delivered a strong Q4 FY26 performance, wherein growth was broad-based across hospitals, diagnostics, pharmacy, and digital healthcare. Our key growth driver is the Apollo Health and Lifestyle business.

[00:00:23]Now this segment is witnessing strong momentum supported by rapid expansion of its diagnostics network, improving operating efficiency, and the strengthening network economics. Now as scale increases, this segment is expected to contribute meaningfully to both growth and profitability.

[00:00:40]Another important catalyst is the proposed merger of the Apollo Cradle and Apollo Fertility with Cloudnine Hospitals, expected to be completed by Q2 FY27. The transaction unlocks significant value for shareholders while enabling Apollo to retain participation in the future growth of what will become one of India's largest integrated maternity and fertility care platforms.

[00:01:03]Apollo also offers strong long-term growth visibility through its aggressive capacity expansion plans. The management aims to increase the hospital capacity to around 13,000 beds from the current 9,600 beds over the medium term.

[00:01:17]Now looking ahead, capacity additions in the hospitals business are expected to support sustained revenue growth while improving profitability in Apollo 24/7 and diagnostics should drive margin expansion.

[00:01:29]The Cloudnine transaction further demonstrates management's ability to unlock value from its healthcare portfolio.

[00:01:36]At current valuation of around 26 times FY27 estimated EBITDA, Apollo remains one of the highest quality healthcare compounders in India with multiple drivers for long-term value creation.

[00:01:46]>> Always good to see you, Lekha. Thanks a lot for joining in and educating us about that particular name. For >> Oh.