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Apollo Hospitals Hits 52-Week High on Talks to Raise $200 Million, Shares Jump 8% in 2 Days

Apollo Hospitals rescheduled AGM to August 30, dividend record date remains unchanged.

Shares of Apollo Hospitals Enterprises (APHS) rose 4% in intraday trade on Friday, hitting a 52-week high of Rs 5,000.90 on the BSE after a report that the hospital chain hopes to raise about $200 million in the current financial year through a stake sale in Apollo HealthCo, its healthcare platform.

With today’s gains, the stock surpassed the previous high of Rs 4,900 on December 5, 2022.

According to The Economic Times, APHS wants to sell about 5-6% of Apollo HealthCo for an expected enterprise value of $250-300 million.

The stock has gained 8% in the past two sessions after reporting a 60% year-on-year rise in consolidated after-tax profit for the March quarter (Q4FY23) to Rs 145 crore. The company posted a PAT of Rs 90 crore in the year-ago quarter (Q4FY22). On a quarterly (QoQ) basis, PAT decreased by 5.9%.

Consolidated revenue rose 21% year-on-year to Rs 4,302 crore. Sequentially, revenue increased by 0.9%, mainly supported by the hospital and pharmacy business. EBITDA fell 3.4% quarter-on-quarter to Rs 488 crore. EBITDA margin decreased 51 basis points to 11.3% due to higher staff costs.

Management guided for solid revenue growth across divisions in FY24, with the hospital division growing 15%, offline pharmacy growing 19-20%, and diagnostics revenue doubling over the next 3 years.

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