Apollo Hospitals: Buy Call with Rs 9000 Target by Choice Institutional Equities

• Choice Institutional Equities recommends 'Buy' for Apollo Hospitals with a target price of INR 9,000.
• Hospital segment revenue projected to grow via 45% bed capacity expansion (adding 4,646 beds) over 5 years, maintaining 24% EBITDA margin.
• Diagnostics arm (AHLL) expected to achieve high-teen revenue growth and mid-teen EBITDA margin post-FY27 through primary care and diagnostic expansion.
• Apollo HealthCo (pharmacy) targets 20% CAGR by FY28E, expanding from 6 to 25 cities with deeper integration.
• Forecasts revenue/EBITDA/PAT CAGR of 18.3%/19.5%/24.0% respectively over FY26–28E.