This multibagger stock doubled shareholder money in one year! Is it still worth buying?

Shares of Apollo Hospitals Enterprises Limited (AHEL) have delivered more than 100 per cent return in the last one year. In comparison, the Nifty 50 index gained over 27 per cent and the S&P BSE Sensex rose over 25 per cent.

The multibagger stock has surged from Rs 2,354.8 to Rs 5,270.35 mark today in the last 12 months - yielding around 124 per cent in this period.

An amount of Rs 5 lakh invested in this large-cap stock a year ago would have turned into Rs 11.19 lakh today.

Long-term investors have made big gains by investing in this stock as it has surged over 300 per cent in the last five years and zoomed over 990 per cent in the last ten years.

The stock opened a tad higher at Rs 5,210 against the previous close of Rs 5205.65 on the Bombay Stock Exchange (BSE).

With a market capitalisation of more than Rs 74,000 crore, the shares stand higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

"Apollo Hospital's stock has corrected about 10% from its recent all-time high. Promoter has recently sold 0.5 per cent holding in the market. This has further added to the correction but we believe that this correction is a great opportunity for retail investors to add this stock to their portfolio to benefit from the leader in the fast-growing healthcare industry," Abhay Agarwal, Founder, Piper Serica told BusinessToday.in.

"With a professional management team and ability to attract and retain the best of doctors, we believe that Apollo presents a $25 billion opportunity for investors to benefit from the emerging healthcare and health tech space," he noted.

Brokerage house ICICI Securities expects performance improvement to continue in the ensuing quarters supported by higher occupancy, cost control initiatives and continued growth momentum in the pharmacy segment.

It noted that the occupancy level remained healthy at ~66 per cent in H1FY22 and is expected to improve further as the situation normalises and expects strong 53.3 per cent growth in hospitals business in FY22 on a low base and consolidation of Kolkata and Guwahati hospitals. The company’s digital outreach for consultations and OPDs would help in accelerating growth.

"We expect 29.2 per cent revenue and 56.2 per cent EBITDA CAGRs over FY21-FY23E on a low base of FY21. The company has put backend pharmacy business and Apollo 24/7 into a separate subsidiary, Apollo HealthCo, and is looking to get a strategic investor in the company to accelerate growth and unlock value," it added.

According to MarketsMojo, the company has declared positive results for the last 4 consecutive quarters and has high institutional holdings at 64.04 per cent.