Apollo Hospitals - Good stock to buy for Long term

Apollos Hospitals - Company Overview

Apollo hospitals group, started in 1983 in Chennai, is an integrated healthcare organization which currently runs over 50 hospitals across India and overseas. Its operations include a chain of Apollo Pharmacies and neighbourhood diagnostic clinics. However, Apollo hospitals is planning to divest at least 50% of Apollo pharmacies, its retail pharmacy industry.

Apollo hospitals - Growth

Apollo hospitals limited has been growing at a rate of about 35 to 35% in the past 5 years. Although Operating Profit margins have decreased over the past 5 years, they are still at a comfortable 15%. It looks likely that Apollo Hospitals, the largest such company in south asia, and with its expanding overseas operations, can sustain about 25% to 30% growth in the coming few years. Apollo hospitals has also entered into a joint venture with Cisco to revolutionize healthcare (or telemedicine) using Communications technology.

I would enter the stock at its current valuation (690 @ 28P/E).
disclosure: I already own this stock. The investment time frame I have in mind is 3 years.

Recent Posts related to the theme "Best Stocks to Buy Now" (2010)

Stocks which were "Best Stocks to Invest" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.
Posts on Investment Basics
  • Understanding the P/E Ratio
  • Return on Equity (ROE), ROCE and Shareholder's Equity
  • Consolidated results vs. Standalone Results.
  • Topline Growth vs Bottomline Growth

  • May 22, 2010

    Custom Search

      © 2008 http://niftyprediction.blogspot.com