Why healthcare stocks Apollo Hospitals, Yatharth Hospital are trading higher today

Shares of hospital operators Apollo Hospitals Enterprise and Yatharth Hospital & Trauma Care Services surged up to 5% on Wednesday, a day after they released their June quarter earnings report. While Yatharth Hospital shares jumped as much as 4.6%, Apollo Hospitals stock price rose 2.6% in the first hour of trade so far. Meanwhile, the equity benchmarks BSE Sensex and Nifty were trading marginally higher up by up to 0.1%.

Extending gains for the second straight session, Apollo Hospitals Enterprise shares opened 0.8% higher at ₹6639.80, after ending 1.26% higher at ₹6,586.55 in the previous session. The healthcare heavyweight rose as much as 2.56% to ₹6,755.25, while its market capitalisation surged to ₹96,738 crore.  

The largecap stock touched its 52-week high of ₹6,871.30 on February 22, 2024, and a 52-week low of ₹4,727 on October 26. 2023. The stock has given 41% return in the last one year and 18.5% year-to-date. In last six months, the counter has given flat returns, while it added nearly 6% in a month.

On the other hand, Yatharth Hospital shares jumped as much as 4.6% to ₹460.90. Early today, the stock opened higher at 449.55 against the previous closing price of 440.70 on the BSE. It hit a 52-week high of ₹503.90 on February 28, 2024, and a 52-week low of ₹307.60 on August 17, 2023.

At the current market cap of ₹3,945 crore, the smallcap stock has surged 36% in a year and nearly 23% in the calendar year 2024. The share price of Yatharth Hospital has fallen nearly 3% in six months, while it gained over 5% in a month.

Apollo Hospitals Q1 beat estimates

For the April-June quarter of FY25,  Apollo Hospitals reported better than expected 83% growth in consolidated net profit at ₹305 crore as compared to ₹167 crore in the year-ago period. Revenue from operations rose 15% to ₹5,086 crore in Q1 FY25, from ₹4,418 crore in previous fiscal. The consolidated EBITDA jumped 33% year-on-year to ₹675 crore.

“We continue to lead the industry in adopting and implementing best-in-class healthcare solutions and technologies to push the boundaries of healthcare for better patient outcomes. Our experts have achieved significant milestones, such as performing India's first Robotic Cytoreductive Surgery, introducing the CORI Surgery System for joint replacements, and conducting the first TRIC Valve Procedure in a patient with two prosthetic valves in India,” says Dr. Prathap C. Reddy, Chairman, Apollo Hospitals Group.

Yatharth Hospital Q1 profit jumps 60%

The Noida-based super specaility hospital chain posted a 60% YoY jump in net profit to ₹30.4 crore in Q1 FY25, from ₹19 crore in the same period last year, supported by improvement in occupancy and average revenue per occupied bed (ARPOB). The revenues rose 37% YoY to ₹212 crore as compared to ₹154.5 crore in Q1 FY24.

The company's Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was up 30% YoY to ₹53.7 crore, while margins dropped to 25.3% from 26.8% in Q1 FY24. The drop in EBITDA margin was attributed to operating losses due to newly commissioned hospital at Faridabad.

“Our strategic acquisition of new hospital at Faridabad has been seamlessly integrated, enhancing our presence in the Delhi NCR market. We continue to attract renowned doctors and leading specialists from across the NCR, further strengthening our brand and advancing our centers of excellence. Oncology and robotic surgeries continue to be a key driver in our increasing Average Revenue Per Occupied Bed (ARPOB) and overall occupancy,” says Yatharth Tyagi, Whole Time Director, Yatharth Hospitals.

“We continue to professionalize our management and bolster our finance team, with addition of three Key Management Personnels this quarter, to strengthen our cash flows and balance sheet, and steadfast our expansion strategy. Our clear strategy focuses on expanding our footprint across North India, ensuring we continue to lead and innovate in the healthcare sector,” says Tyagi. 

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