apollo hospitals

30 years - 64 hospitals, 2200 pharmacies, over 100 primary care diagnostic units, health insurance services, 15 acadamic institutions, and the list goes on...

These guys seem unstopable in their efforts to 'Touch a billion Lives' with international standards at a price point that indians can afford

Dr. Pratap Reddy leading the way to better health care standards

They are entirely focused on one industry - they might be doing several things but in the end it is all to achieve their goal.

has anyone thought of this one? Does anyone think it is good to enter now?

 

Great company, the best in its sector I think. Good expansion over the years and healthcare cover is bound to increase over a period time. With rising affordability of healthcare, this company is going to be a true wealth creator in its sector. ( Disclaimer: I have shares of Apollo Hospitals).

 

Dont you guys think apollo hospital is selling at a high valuation ?

 

@Investor2008 valuations are always high for sector leaders. Look at HUL, Asian Paints, Bosch, Motherson the list goes on. The thing is you are paying a premium for the leader and investments are relatively secured because people take out money first from the more "unsure" companies and then later from the leader. So thats why. I dont think you should worry about the valuations of peers if you are investing in the leader. Leader will continue to command premium valuations.

 

Alright good for you. All the best. You can also see Bosch which is selling at high pe, also leader in auto components. Good luck

 

@Investor2008 I understand that your sole focus is on high pe and being "overvalued". Just want to put out an example that i had bought Bosch @ 16000 november last year when people were complaining its high pe. Look at that stock now. Touched 27k within 5 months. I understand your sarcasm. You may go for low pe stocks but for some people its about investing in the leader stocks which will fetch them decent returns with reasonable amount of security of investment. No need to get sarcastic and be personal. All the best to you as well.

 

forget about stock market, let us come to reality life. If a business is earning 1000 crores would you pay 18k crores to buy that business in real life? If you place 18kcrores in bank you will get 2000 crores from bank. Why you want to invest in business which is giving less return than bank !!!!

anyways from my experience in stock market for all these years am not gonna give money for such a high valuation.i would better be happy to put my money in bank and be happy. You said you invested in 16000 and it went up. From my experience , you are lucky that there was not a strong bear market, it is just consolidation. If it is a strong bear market, market would first bring high valuation stocks down and all investors will panic and sell it . This is what it happens in every bear market. Anyway these are just my thoughts and it depends on each and every individual whether to invest their money or not . Its their money and its their decision. Thanks.

 

can we consider Apollo hospitals a brand with a wide moat?

 

Obviously it's a leader in hospital in India. In order to build hospital and brand name like Apollo, for any other companies it would cost a lot of money.

 

So is there a possibility of it being valued at high levels by the market in the future as well?

 

Market grows up with earnings. If company can show more earnings market will grow according to it.

 

@Investor2008 I think what I would differ from your point of view is that you are not buying the business "as of now" but what the business "will be". If you are buying a stock then you are going to buy for its future potential and not what it is currently. Tell me any good stock which is currently at 1 pe or less. If you are buying a company at 2 pe then that means that you feel that it is cheap even if you are paying twice the amount of earnings.

Right now is a fairly bearish and volatile market dear. Look at how much midcap has broken down and how much bluechips have broken down. Bluechips are still commanding 30-50 pe. Anyways, lets agree to disagree. . Please dont take it personal, because it is not. We are all here to learn and contribute our understanding to each other. Nothing more. All the best.

 

Thanks guys for your views- I think I will go ahead with an investment in Apollo hospitals

 

In my View Instead of buying " Apollo Hospital " stock
my choice is " Indraprastha Medical " " Apollo Hospital " is having major stake in Indraprastha medical , it is available at very reasonable price in market ....

Indraprastha Medical :

CMP Rs. 59.75
Face value : Rs.10

Highlight points :
1. stake holding : president of india 26 %
Apollo Hospital Enterprises Ltd 22.02 %
2.PE Ratio : 17.40
3.Low Debt company
4.Last 14 years continuous Dividend paying company
5.Dividend yield 3.01 %
6.Last 5 years Growth in earnings

 

@RAMA MURTHY SASTRY CHALLA yes IP is also a good bet. Its a good investment opportunity in this sector.

 

Agreed sir
I bought yesterday
will add in future