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.


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