Street looking beyond Apollo Hospitals' disappointing Q4 performance

Based on sum-of-the-parts valuation, some analysts have pegged their target price between Rs 4,900-5,000

Apollo Hospitals Enterprise Q4 results delivered disappointing Ebitda as compared to analysts' consensus, despite 12 per cent growth YoY, due to a sequential 21 per cent decline QoQ. The profit after tax dropped 46 per cent YoY to Rs 90 crore. Revenues grew 24 per cent YoY to Rs 3,540 cr (down 3 per cent QoQ), mainly boosted by inorganic growth due to hospital acquisitions.

The QoQ decline was largely because of a sharp drop in occupancy across the hospital network. Occupancy dropped to 57 per cent, from 63 per cent QoQ; the management explained this as delays in elective surgery