Apollo Hospitals Enterprise Limited

Healthcare — Medical Care Facilities · NSE

₹7,890.00+₹0.50 (+0.01%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Apollo Hospitals Enterprise Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Apollo Hospitals Enterprise Limited, together with its subsidiaries, provides healthcare services in India. It operates through Healthcare Services, Retail Health & Diagnostics, Digital Health & Pharmacy Distribution, and Others segments.

IndustryMedical Care Facilities

SectorHealthcare

Employees44,008

Annual revenue₹24,911 Cr

How does it make money?

Turns over ₹24,911 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 44,008 employees supports ₹56.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹56.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What is the outlook?

28 analysts covering the stock expect revenue to grow about 18.2% and earnings to grow about 26.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.2%

Est. earnings growth+26.9%

Analysts28

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +51% while net margin moved +56% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+51%

Margin effect+56%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 54.3x is demanding — it needs sustained high growth to justify
✓ P/E is 44% below its own historical median of 97.1x — cheap by its own standards
✗ P/B of 11.97x is a steep premium to book

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

54.3x

3Y Median

97.1x

40 monthly readings · mean 92.9x · range 58.5x–120.0x

Sector Median

33.3x

median of 2 sector peers

🟢Current valuation is approximately 44% below its 3y median of 97.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 63% above the peer median of 33.3x.

vs. its own history

Cheap

97.1x median over 40 months · -44%

vs. sector peers

Expensive

33.3x median of 2 peers · +63%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

31.6x

PEG

1.63

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 12.5% to 15.4% over 3 years.
Cash generation is improving
Free cash flow is up 260% over 3 years.
Return on equity is rising
ROE has improved from 13.2% to 20.5%.
Return on capital is rising
ROCE has improved from 13.1% to 19.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹4,332 Cr to ₹8,492 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.5% to 15.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 44% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 63% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.8% CAGR
Latest reported year was 20.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹894 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 19.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹1.13 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

54.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.97x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹145.26

Profitable

Profitable on a per-share basis

ROE

20.5%

Strong

Strong capital efficiency

ROCE

19.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.25%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹894 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

36.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.2%

Average

Average margins

Net Margin

7.9%

Average

Average bottom-line conversion

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8305.8 / 8596.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,445 Cr	₹18,862 Cr	₹21,527 Cr	₹24,911 Cr	+14.8%
EBITDA	₹2,059 Cr	₹2,442 Cr	₹3,148 Cr	₹3,835 Cr	+23.0%
EBITDA Margin	12.5%	12.9%	14.6%	15.4%	—
PAT (Net Profit)	₹819 Cr	₹899 Cr	₹1,446 Cr	₹1,942 Cr	+33.3%
EPS	₹56.97	₹62.5	₹100.56	₹134.94	+33.3%
ROE	13.2%	13.0%	17.6%	20.5%	—
ROCE	13.1%	14.8%	15.3%	19.2%	—
Total Debt	₹4,332 Cr	₹5,333 Cr	₹5,419 Cr	₹8,492 Cr	+25.2%
Free Cash Flow	₹248 Cr	₹783 Cr	₹424 Cr	₹894 Cr	+53.2%

🟢 Revenue has grown at 14.8% a year over 3 years.

🟢 EBITDA has grown at 23.0% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 15.4% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 33.3% a year over 3 years.

🟢 EPS has grown at 33.3% a year over 3 years.

🟢 ROE has risen from 13.2% to 20.5% over 3 years (+7.3 pts).

🟢 ROCE has risen from 13.1% to 19.2% over 3 years (+6.1 pts).

🔴 Total Debt has grown at 25.2% a year over 3 years.

🟢 Free Cash Flow has grown at 53.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22,197 Cr

Total Liabilities

₹12,222 Cr

Cash & Equivalents

₹811 Cr

Operating Cash Flow

₹2,856 Cr

Capex

-₹1,962 Cr

Shareholding (proxy)

Institutional Holding

49.7%

Insider Holding

28.4%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹20

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

26 Buy · 3 Hold · 1 Sell

Target Price (Mean)

₹9,836.5

+24.7% vs CMP

Target Range

₹6,230 – ₹10,800

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%

Recent News

2 mixed4 general

Apollo Hospitals Enterprise (APOLLOHOSP) Share Price Falls 2.31% Today

Univest, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Apollo Hospitals Enterprise Limited (APOLLOHOSP.NS) Jumps 4.72% as Healthcare Major Approaches Resistance Zone - Stock Surge Alerts

https://www.siam.in/, 12 Oct

Hospital stocks under pressure: Apollo, Yatharth, Fortis, Max drop up to 7%

Business Standard, 30 Sept

Hospital stocks Max Healthcare, Apollo Hospitals, Fortis plunge up to 7% - What is driving the stocks down?

Livemint, 30 Sept

Jefferies sets INR 10,350.00 target for Apollo Hospitals stock

ad-hoc-news.de, 16 Oct

Apollo Hospitals Shares hit fresh 52-week high of ₹8,330.00 After Strong Q4 Growth and Strategic Expansion

India Infoline, 21 MayCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑