 "What's the secret behind Apollo Hospital's dream run?")
Indian markets and most of the mainline shares are trading near their year -low levels today. However, certain sector and companies continue to do well. Pharmaceuatical sector, which is generally considered defensive, has outperformed the other sectors.
Within the pharma sector Apollo Hospital stands out as the main gainer. The stock touched an all time high of Rs 718 on Monday.
[caption id=“attachment_148185” align=“alignleft” width=“380” caption=“Within the pharma sector Apollo Hospital stands out as the main gainer. The stock touched an all time high of Rs 718 on Monday. Reuters”]  [/caption]
The company, which started its operations from Chennai, has progressively spread its wings to other parts of the country. Apollo Hospitals currently runs 52 hospitals with a bed capacity of 8,513. The company is now expanding in Tier II/III cites while it plans to add eight hospitals in Tier I cities, according to a report in the The Hindu Business Line. This will add another 2,860 beds to its current capacity.
What has led to the current run? It is the expectation of FDI in retail. The company runs an organised pharmacy business with 1,257 centres. It has been focusing on making them more profitable, rather than adding new outlets, in which it has been successful. Market reports say that the company is likely to hive-off this division and bring in an equity partner to expand the business.
The company is also looking at equity partners for its operation in Mumbai. This comes after a fall out with one of its joint venture partner, One Equity Partners, a subsidiary of JP Morgan, according to a Business Standard report. The companyis planning a 350-bed hospital in Navi Mumbai, a 300 bed hospital in Byculla, Mumbai and 250 bed hospital in Thane.
Impact Shorts
More ShortsIn another sign of aggressive growth strategy, the company plans to have 100 sugar clinics in 90 days with a capital expenditure of Rs 30 crore. The company currently runs 13 such units. These are specialty units for diabetes management and care.
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