Apollo Hospitals - Muted operating performance - Kotak

Apollo Hospitals' reported net income was below expectations, driven mainly by weak sales. Lower occupancy rates/ARPOB growth in Chennai offset the addition of beds from the Ayanambakkam facility. In-patient volume growth/occupancy rates in Tier-II cities were also disappointing. We will update our estimates after the earnings call (on May 21, 2013).

After the recent stock rally and weak operational performance, we believe the stock offers limited margin of safety.

Source : Equity Bulls

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