What’s Driving Apollo Hospitals’ Stock Price Higher?
Shares of Apollo Hospitals Enterprise Ltd. gained over 25 percent in August, their best monthly performance since May 2009.
A combination of improving financials and the management’s shift in focus to profitability over expenditure may have led to the renewed optimism in the hospital chain.
Besides, the turnaround in new hospitals and the Navi Mumbai unit breaking even also helped. Only two of the 15 new hospitals are currently making operational losses. The company reported turnaround and growth in all verticals in the April-June period. The pharmacy business remained strong and even Apollo Health and Lifestyle losses came down.
It will focus on cost control measures and debt reduction, the hospital chain operator said in a post-earnings conference call. The healthcare firm expects the government’s Ayushman Bharat scheme to aid growth going ahead.