📌 At a Glance
Apollo Hospitals delivered a 10x profit jump in 5 years — from ₹137 Cr in FY21 to ₹1,505 Cr in FY25 — driven by hospital expansion, pharmacy retail growth, and a digital health push. But with a P/E of nearly 70, rising debt, and a ₹7,600 Cr capex plan underway, is this stock priced for immortality… or is the ICU bill just delayed?
1️⃣ About the Company
Founded by Dr. Prathap C. Reddy in 1983, Apollo was India’s first corporate hospital. Today, it’s a:
- 🏥 Healthcare empire with 73 hospitals and 10,134 beds
- 💊 Retail monster with 5,000+ Apollo Pharmacies
- 📲 Tech-forward player via Apollo 24|7
- 🏗️ Infrastructure giant with ₹7,600 Cr capex to add 4,300 more beds
The business has quietly transformed into a FMCG-tech-healthcare hybrid.
2️⃣ Segment Snapshot
| Segment | FY25 Revenue Share | Details |
|---|---|---|
| Hospitals | ~52% | Core engine, slower expansion ROI |
| Pharmacies (HealthCo) | ~35% | High-volume, higher-margin retail |
| Diagnostics & Clinics | ~10% | Sticky, under-penetrated, scaling |
| Digital Health | <5% | Apollo 24/7 – burning fast, scaling faster |
📦 Apollo is no longer a pure hospital stock — it’s diversified, digital, and data-heavy.
3️⃣ Key Management
| Name | Role | Area of Focus |
|---|---|---|
| Dr. Prathap Reddy | Founder Chairman | Vision + Strategy |
| Preetha Reddy | Executive Vice Chair | Clinical & Hospital Ops |
| Suneeta Reddy | MD | Capital allocation, IR face |
| Shobana Kamineni | Executive VP | Retail + Digital Growth |
| Antony Jacob | CEO, Apollo HealthCo | Pharmacy + Tech leadership |
Zero churn. Clear command chain. Succession sorted.
4️⃣ Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| FY | Revenue |
|---|---|
| 2021 | ₹10,560 |
| 2022 | ₹14,663 |
| 2023 | ₹16,612 |
| 2024 | ₹19,059 |
| 2025 | ₹21,794 |
🧾 CAGR: 16.5% – healthy, boring, compounding.
Net Profit (₹ Cr)
| FY | Net Profit |
|---|---|
| 2021 | ₹137 |
| 2022 | ₹1,108 |
| 2023 | ₹844 |
| 2024 | ₹935 |
| 2025 | ₹1,505 |
💥 CAGR: 95% — HealthCo and COVID tailwinds made Apollo a post-pandemic superstar.
5️⃣ Margins & Returns
| Metric | FY21 | FY25 |
|---|---|---|
| OPM (%) | 11% | 14% |
| ROCE (%) | 8% | 17.1% |
| ROE (%) | 10% | 19.1% |
| EPS (₹) | ₹10.46 | ₹100.56 |
| Net Debt/EBITDA | 2.8x | 2.6x |
Margins are trending up, but nothing FMCG-like to justify the P/E.
6️⃣ Balance Sheet & Capex
| Metric | FY21 | FY25 |
|---|---|---|
| Reserves | ₹4,531 Cr | ₹8,140 Cr |
| Borrowings | ₹4,160 Cr | ₹7,864 Cr |
| CWIP | ₹234 Cr | ₹771 Cr |
| Investments | ₹1,343 Cr | ₹2,487 Cr |
| Total Assets | ₹11,392 Cr | ₹20,657 Cr |
Debt has ballooned. Asset base doubled. Expansion’s real — but it’s expensive.
7️⃣ Valuation: Priced to Save the World?
| Metric | Value |
|---|---|
| CMP | ₹6,994 |
| EPS (FY25) | ₹100.56 |
| P/E | 69.6x |
| P/B | 12.2x |
| Book Value | ₹571 |
🎯 Fair Value Range:
- FY26E PAT: ₹1,800 Cr
- P/E Band: 35x–45x
- Market Cap Range: ₹63,000–₹81,000 Cr
- Fair Value per Share: ₹4,200–₹5,400
CMP is ~30% above even the optimistic range — priced for flawless execution.
8️⃣ Growth Triggers
- 🏥 ₹7,600 Cr bed expansion = future topline boost
- 💊 HealthCo demerger will unlock value
- 📲 Apollo 24/7 gaining traction in telehealth/diagnostics
- 📈 India’s insurance & healthcare infra boom = secular tailwind
9️⃣ Ownership Trends
| Category | Jun ’22 | Mar ’25 | Change |
|---|---|---|---|
| Promoters | 29.33% | 29.34% | 💤 Flat |
| FIIs | 48.48% | 42.74% | 🔽 Selling |
| DIIs | 15.64% | 22.29% | 🔼 Buying |
| Public | 6.32% | 5.41% | 🔽 Retail faded |
FIIs trimmed while DIIs added — classic high-P/E rotation signs.
🔟 Risks & Red Flags
- ⚠️ Valuation Euphoria: 70x P/E is tough to justify without 25–30% CAGR
- 🏗️ Capex Execution Risk: 4,300 beds = massive scale-up
- 💰 Debt Pressure: Borrowings near ₹8,000 Cr
- 🧾 Low Yield: 0.23% dividend — no comfort cushion
1️⃣1️⃣ EduInvesting Take
Apollo has gone from hospital chain to healthcare empire:
✅ 10x PAT
✅ Expanded margin profile
✅ Multiple levers: retail, digital, diagnostics
✅ Solid management
But…
❌ You’re not buying a hospital — you’re buying a growth fantasy priced like tech.
❌ At ₹6,994, it’s already billing FY27 earnings.
1️⃣2️⃣ TL;DR
Apollo is what happens when FMCG valuation meets ICU capex. A great company — no question. But the stock? Already in post-op recovery.
✍️ Written by Prashant | 📅 June 14, 2025
Tags: Apollo Hospitals, Apollo HealthCo, Retail Pharmacy India, Healthcare Expansion, Hospital Stocks, FY25 Recap, EduInvesting, Nifty 50 Valuation
