Apollo Hospitals - 3Q margins muted; SAP growing profitably - Nomura

Apollo's 3QFY13 results are broadly in line with our estimates. Growth and profitability in the stand-alone pharmacy (SAP) business is encouraging. In the hospital business, growth in average revenue per occupied bed (ARPOB) and decrease in average length of stay (ALOS) are key positives.

Although there have been some execution delays in certain facilities, we believe such delays are not materially disruptive. In our view, Apollo Hospitals is a pure play on the secular growth story of Indian healthcare and appears well positioned to benefit from the domestic healthcare delivery landscape.

We maintain our Buy recommendation.

Source : Equity Bulls

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