Apollo Hospitals Enterprise Ltd. is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Apollo Hospitals Enterprise Ltd. indicates a cautious stance for investors. It suggests that while the stock exhibits certain strengths, it may not currently offer compelling upside potential relative to its risks and valuation. Investors are advised to maintain their existing positions rather than aggressively buying or selling the stock at this juncture. This rating is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals.

Quality Assessment

As of 27 December 2025, Apollo Hospitals demonstrates a strong quality profile. The company maintains a high Return on Capital Employed (ROCE) of 16.84%, reflecting efficient utilisation of capital and robust operational performance. Its management efficiency remains commendable, supported by consistent positive quarterly results over the last eight quarters. The operating profit margin has shown healthy expansion, with an annual growth rate of 37.14%, underscoring the company’s ability to convert sales into earnings effectively. These factors contribute to a 'good' quality grade, signalling a fundamentally sound business with sustainable earnings potential.

Valuation Perspective

From a valuation standpoint, Apollo Hospitals is currently rated as 'attractive'. The stock trades at an Enterprise Value to Capital Employed ratio of 7.7, which is below the average historical valuations of its peer group, indicating a relative discount. Despite this, the Price/Earnings to Growth (PEG) ratio stands at 1.5, suggesting moderate growth expectations priced into the stock. The company’s market capitalisation remains in the large-cap segment, providing stability and liquidity. Investors should note that while the valuation appears reasonable, it does not signal a strong buy opportunity, aligning with the 'Hold' rating.

Financial Trend and Growth Metrics

The financial trend for Apollo Hospitals remains positive as of 27 December 2025. Net sales have grown at an annualised rate of 16.66%, reflecting steady demand and expansion in its hospital services. Operating profit growth is even more pronounced, at 37.14% annually, highlighting improving operational leverage. The company’s ability to service debt is strong, with a low Debt to EBITDA ratio of 1.48 times, indicating manageable leverage and financial stability. Additionally, the operating profit to interest coverage ratio stands at a robust 8.59 times, further underscoring the firm’s capacity to meet interest obligations comfortably.

Technical Analysis

Technically, the stock exhibits a mildly bearish trend. Recent price movements show a slight decline of 0.24% on the day, with a one-month return of -3.21% and a three-month return of -4.66%. The year-to-date return is -1.94%, and the one-year return is -1.48%, indicating subdued price momentum. This technical backdrop suggests limited near-term upside and some caution for momentum-driven investors. The mildly bearish technical grade supports the 'Hold' rating, signalling that the stock may not be poised for immediate gains but is not in a strong downtrend either.

Additional Considerations

While Apollo Hospitals shows many strengths, there are some factors warranting investor attention. Promoter confidence appears to be waning, with promoters reducing their stake by 1.32% in the previous quarter to hold 28.02% currently. This reduction may reflect concerns about future growth prospects or capital allocation priorities. Investors should monitor promoter activity as a potential indicator of management’s outlook on the company’s trajectory.

Despite the slight decline in promoter holding, the company’s fundamentals remain solid, with consistent positive quarterly results and strong operational metrics. The stock’s current Mojo Score of 55.0, down from 71 previously, reflects this balanced view, combining attractive valuation and quality with cautious technical signals and promoter behaviour.

Investor Takeaway

For investors considering Apollo Hospitals Enterprise Ltd., the 'Hold' rating advises a measured approach. The company’s strong quality metrics and attractive valuation provide a solid foundation, but subdued technical signals and promoter stake reduction counsel caution. The stock’s recent returns have been modestly negative, yet profits have grown significantly, indicating underlying business strength despite market volatility.

Investors should weigh these factors carefully, recognising that the current rating reflects a balance between opportunity and risk. Maintaining existing holdings while monitoring developments in operational performance, market conditions, and promoter activity would be prudent. New investors might consider waiting for clearer technical signals or further valuation improvements before initiating positions.

Summary of Key Metrics as of 27 December 2025

• Mojo Score: 55.0 (Hold)


• ROCE: 16.84%


• Debt to EBITDA: 1.48 times


• Net Sales Growth (Annualised): 16.66%


• Operating Profit Growth (Annualised): 37.14%


• Operating Profit to Interest Coverage: 8.59 times


• Enterprise Value to Capital Employed: 7.7


• PEG Ratio: 1.5


• Promoter Holding: 28.02% (down 1.32% last quarter)


• Stock Returns (1Y): -1.48%

Overall, Apollo Hospitals Enterprise Ltd. remains a fundamentally sound large-cap healthcare stock with a balanced outlook. The 'Hold' rating reflects the current equilibrium between its operational strengths and market challenges, guiding investors to adopt a cautious but attentive stance.

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