India's Apollo Hospitals, Max Healthcare fall as Macquarie keeps 'Underperform' rating

Max Healthcare Institute

26/06/2024 10:25

** Shares of Apollo Hospitals  APLH.NS  drop 2.5% to
6,139.55 rupees to top losses on the Nifty 50 index  .NSEI ,
which is up 0.7%  .BO 
    ** Max Healthcare  MAXE.NS  down 1.8% to 877.75 rupees 
    ** Brokerage Macquarie reiterates "Underperform" on APLH and
MAXE stocks, with PT of 5,040 rupees and 560 rupees,
respectively 
    ** Says volumes in Indian hospital industry decelerated to
5% in FY24 from 24%-27% growth in FY23 
    ** Adds long-term volumes growth trends are sluggish on
falling in-patient admissions growth rate 
    ** Expects capacity expansion to hit bottomlines, sees core
profit margin compression for APLH, MAXE in FY25-26
    ** Analysts' avg rating on APLH, MAXE is "Buy", median PT is
7,000 rupees and 885 rupees, respectively 
    ** At current price, APLH is up ~8% YTD vs ~28% rise in MAXE


 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))