Shares of this large-cap integrated healthcare services provider gained investor interest following its announcement on November 1 regarding plans to expand capacity. The company intends to build and operate a 500-bed hospital in a prime location in Worli, Mumbai and is also set to increase its hospital capacity in Lucknow by an additional 200 beds.
Price Movement
Apollo Hospitals Enterprise Limited’s share price started off relatively stable in Monday’s trading session but later declined by 1.5 percent, dropping to Rs.6,923.00 from its previous closing price of Rs.7,031.95. Over the past five years, the stock has provided investors with returns exceeding 400 percent.
What is the news
Apollo Hospitals, India’s largest integrated healthcare provider, has announced plans to build and operate a 500-bed hospital in Worli, Mumbai, alongside expanding its Lucknow facility by adding 200 beds, bringing its total to 500.
The new projects, set to be operational within three years, are part of a larger plan to add over 3,512 beds across 11 locations in four years, with an estimated total cost of Rs 6,100 crore.
Over Rs 1,700 crore has already been spent, with the remaining Rs 4,400 crore expected to be funded through existing resources and internal accruals.
Management Commentary
Commenting on the capex plans, Ms Suneeta Reddy, Managing Director, of Apollo Hospitals said, “With our expansion in Mumbai and Lucknow, we’re taking a significant step forward in our commitment to making top-quality healthcare accessible across India.
These new facilities strengthen our footprint in strategic locations, catering to the growing demand for excellence in healthcare. With these two additional expansions, we now have plans to increase our overall capacity beds by over 3500 over the next 4 years beginning FY26.”
Financial Performance
In its latest financial report for the quarter ending June 2024, Apollo Hospitals announced revenue from operations of Rs.5,086 crore, representing a 15 percent rise from Rs.4,418 crore in Q2 FY24. The company also reported net profits of Rs.316 crore, rising 83 percent from Rs.173 crore in the same quarter last year.
About the Company
Apollo is India’s largest integrated healthcare platform, featuring more than 10,000 beds across 73 hospitals, over 6,000 pharmacies, and more than 200 clinics and diagnostic centers, along with 150 telemedicine facilities.
It is recognized as the world’s leading cardiac center, performing over 200,000 surgeries, and holds the title of the largest private provider of cancer care globally.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing
