Presented by:

Parth sarathi Pradhan

Apollo Hospitals
""Setting the benchmark for compassionate healthcare, Apollo Hospital is where
excellence meets care.""

4/30/2024
AHEL the Pioneer of Indian Hospital Industry with Market cap of Rs 97124.40 Cr

Company Overview Case Analysis: Apollo Hospitals General overview

Case Analysis: Apollo Hospital: A microcosm of the healthcare
Case Analysis: Apollo Hospital: A microcosm of the healthcare industry
industry

Apollo Hospitals (AHEL) stands as the largest private healthcare provider in India, boasting an extensive network
comprising 70 hospitals (44 owned, 5 managed, and 21 day care centres/CRADLE centres) with a total bed capacity
exceeding 10,000, including the Proton facility. The organization's pan-India presence is particularly notable, with a
predominant reach in South India, where over 50% of its beds are located. Additionally, Apollo owns the largest
pharmacy chain in India, encompassing 4,000 stores.

During the period from FY12 to FY17, Apollo underwent a significant expansion phase, augmenting its bed
capacity by approximately 2,338 beds, constituting around 27% of the total. This expansion exerted pressure on
margins and return profiles. Subsequently, the organization adopted a strategy of limited capital expenditure and
operational consolidation, leading to a notable improvement in Return on Capital Employed (ROCE), from 8% in FY18
to 14% and above in FY20

Source: Bloomberg, Reuters, CMIE, MOHFW, Dealogic, Tracxn, TrendLyne , IFCI

4/30/2024
India becomes Hotspot of deal making seeks Interest from FIIs among Asian
peers
Sectoral Project Global Comparison Analysis

The Indian hospital industry is currently positioned similarly to its Asian counterparts, maintaining comparable market standings. However, it distinguishes itself
by offering more promising prospects for revenue and EBITDA growth. In the recent one-year period, Apollo has exhibited remarkable performance, recording a
significant uptrend of 155%, surpassing the Nifty index by an impressive margin of 84%. Conversely, NH, with a 64% increase, has slightly lagged behind the
Nifty, trailing by 7%.
It is noteworthy that Apollo's EV/EBITDA multiple has undergone expansion, reaching approximately 24x/19x for FY22/23e EV/EBITDA. This represents a
notable premium of 25-30% compared to its historical average over the past five years. In contrast, Narayana is currently valued at approximately
16x/14x for FY22/23e EV/EBITDA, presenting a discount of around 10-15% in relation to its historical average over the same five-year period.

Source: Bloomberg, Reuters, CMIE, MOHFW, Dealogic, Tracxn, TrendLyne , IFCI

4/30/2024
Operational Tenets Help In understanding the route of Cost-Optimization leads to Increase In
market Value
Sectoral Project Global Comparison
Case Analysis: Analysis
Apollo Hospitals Operational Tenets
Case Analysis: Apollo Hospital: A microcosm of the healthcare industry

Apollo Hospitals ARPOB grew 14% to ₹51,668, driven by 65% occupancy and 25%
pharmacy growth."

Apollo Hospitals' Average Length of Stay (ALOS) is vital for operational efficiency
and patient care strategies, as it measures the duration patients spend in the
hospital.

ALOS serves as a key performance indicator for Apollo, guiding strategic decisions
and resource allocation to maintain high standards of patient care, operational
efficiency, and financial resilience.

The variety of clinical services offered by the hospital allows for revenue streams
from multiple sources, reducing dependency on specific healthcare segments and
enhancing financial stability.

Investors view diversified clinical operations as indicators of resilience and

adaptability to industry dynamics, appealing to those seeking less risk-prone
investments

This diversification positions the organization to capitalize on emerging healthcare

trends, making it attractive to investors

Hospitals with a broad array of clinical services can better navigate fluctuations in
demand for specific medical specialties or treatments, further bolstering investor
confidence.

Source: Bloomberg, Reuters, CMIE, MOHFW, Dealogic, Tracxn, TrendLyne , IFCI

4/30/2024
Improved Financial gains shows robust Productivity & capital Gains

Sectoral Project Global Comparison

Case Analysis: Analysis
Apollo Hospitals Financial Metrics
Case Analysis: Apollo Hospital: A microcosm of the healthcare industry

Sales and revenue saw significant growth, with sales reaching INR 48,469 million and
revenue at INR 48,691 million, both up from the previous year. (2023-2024)

Net income also showed notable improvement, reaching INR 2,329 million, surpassing
the previous year's figures.

Sales and revenue continued on an upward trajectory, reaching INR 92,647 million
and INR 93,151 million, respectively, compared to the previous year.

Basic earnings per share from continuing operations decreased to INR 27.78
compared to INR 36.24 reported in the same period a year ago

Apollo Hospitals demonstrated robust operational performance with significant

growth in sales and revenue for both the quarter and six months.

Net income also showed notable improvement, reaching INR 2,329 million,
surpassing the previous year's figures

Source: Bloomberg, Reuters, CMIE, MOHFW, Dealogic, Tracxn, TrendLyne , IFCI

4/30/2024