Apollo Hospitals Enterprise Share Price

Company Brief

Widely known for operating a nationwide legendary chain of hospitals, the Apollo group is a modern healthcare giant that also runs several diagnostic centres, pharmacies and telehealth clinics under its umbrella. Over the years, the group has forayed into other non-core healthcare domains like health insurance, medical colleges and medvarsity, nursing and hospital management, global projects consultancy and research. 
The prominent brands under its roof include Apollo Munich Health Insurance, Apollo Pharmacy, Life Studio, Apollo Spectra, and Apollo Cradle, besides Apollo Clinic and Hospitals.

History

Apollo Hospitals was founded by Dr Prathap C Reddy, with its first-ever branch established in Chennai in 1983 and inaugurated by the then president Shri Giani Zail Singh. In the 1980's it had declared its maiden dividend of 10% and established a branch in Hyderabad. Since then, it has set up numerous branches in New Delhi, Bangalore, Kolkata, Mumbai, Noida, Ahmedabad, and Bhubaneshwar, among other Indian cities. It also has a branch in Dhaka, Bangladesh.
One of its early trailblazing endeavours was telemedicine services in 2000 at Aragonda village in Chittoor, Andhra Pradesh. In 2012, 38% stake of the group's healthcare BPO segment was disposed off to Sutherland Global Services at a valuation of INR 225 crores. Further, in early 2020, the majority stake of its insurance subsidiary Apollo Munich Health Insurance was acquired by HDFC for INR 1,495.81 crores.
Over the years, the group has earned multiple international recognitions in healthcare standards, biotechnological breakthroughs and innovative medical care. It has 8 JCIA and 30 NABH (National Accreditation Board for Hospitals) accredited hospitals, not to mention its state-of-the-art speciality wings, including 25 Heart institutes, several cancer hospitals and organ transplant centres.

Board, Management and Auditors

Board of Directors

The board of directors manages the group in the parent company under the able leadership of founder chairman Dr Prathap Chandra Reddy - a Padma Bhushan and Padma Vibhushan awardee. The board consists of:

Executive Director - Prathap C. Reddy 

Dr Reddy is the visionary founder of the Apollo enterprise, responsible for ushering in an era of world-class medical facilities and treatments in India. He is the torchbearer of modern healthcare in this country and is the driving force behind the group's success.

Executive Vice Chairperson - Dr Preetha Reddy

A member of the founding family Dr Reddy is known for her immense contribution to the furtherance of the Apollo group and the betterment of the country through her philanthropic ventures and able governance.

 Executive Vice Chairperson - Ms Shobana Kamineni

Another member of the founding family has advocated the operation of integrated digital-first healthcare services in the country through Apollo 24/7. Presently Ms Kamineni leads the country's largest pharmacy chain, Apollo Pharmacy, with a countrywide network of over 4,000+ stores and 30,000+ employees.

Ms Suneeta Reddy -  Managing Director

Ms Reddy is at the forefront of the group's finance and strategy functions and serves on various subsidiaries' boards.

Dr Sangita Reddy- Joint Managing Director

As a joint MD, Dr Reddy spearheads the Global Healthcare service delivery and is an honourable member of the World Economic Forum.

Independent Directors

M B N Rao is the lead independent director, and Vinayak Chatterjee, Murali Doraiswamy, V Kavitha Dutt, and Som Mittal are eminent independent directors on the board who oversee the corporate governance of the company and look into the interest of the investors and public.

Auditors

The financials are audited by Deloitte Haskins & Sells LLP. It is one of the largest big4 accounting firm networks headquartered in England. They have been auditing the financials of the group from the financial year ending March 2017.

Market Capitalisation and Stock Information

Apollo Enterprise Ltd., went public in the year 1979. Consequently, it was listed in the NSE in January 1996, followed by BSE and several other exchanges. Since then, the stock has performed well and even stood out as the top performer in its peer groups in recent times. Let's look at some of the facts and figures:
●  The market cap stands at INR 51,895 crores, with the free float Market cap being INR 39,767.52 as of 31st May 2022.
●   The TTQ or Total Traded Quantity of its stock is 0.18 Lakhs.
●  The Face Value of shares is INR 5 each.
●  The stock is part of the S&P BSE 100 Index.

Shareholding Pattern

Till March 2022, the promoter holding has been 29.33%, with the remaining stake held by the public, including FIIs and DIIs being 70.67% of the total shares. Out of the total stake, FIIs held 50.81%, Other Domestic Institutions 6.51%, Mutual Funds 5.94%, and Retail and Other investors held 7.41% of the company's equity shares.

The top mutual funds that have invested more than 2% of their AUM in the stock are Nippon India Pharma Fund, IDFC Balanced Advantage Fund, LIC MF Large Cap Fund and Sundaram Services Fund.

Corporate Social Responsibility Information

Steered by Dr Reddy, the founder and chairman of the group Apollo has been an exemplar in philanthropic collaborations and endeavours. The group's Total Health Cycle philosophy is: to 'screen, diagnose, treat, educate, and empower.' It successfully runs 3 philanthropic and humanitarian programs that aim at the economic and social prosperity of the underprivileged.

Total Health Program

This CSR model aims to enhance the mental, physical, social, ecological and spiritual health of individuals and the community at large. It directs its activities toward the society's comprehensive welfare and is mostly concentrated in the rural areas of Andhra Pradesh and Telangana.

Billion Hearts Beating Foundation

This non-profit organisation which runs several charitable projects for the elderly, public servants and healthcare workers, contributes by way of medicine supply and organisation of free healthcare camps for the beneficiaries. It also operates some critical care units in areas of public interest.

The SACHi Initiative

SACHi, on the other hand, is a child-focused non-profit initiative that fights for causes such as equal rights and quality healthcare for children. Over the years, it has provided free heart treatments, medicines and supplements to numerous children's homes and orphanages. It continues to pledge its services to touch the lives of many more children in the times to come.

Financial Information

Top Line

Over the last 5 years, the audited financial statements show a leap of INR 6420 crores in the Apollo group's total revenue. It was INR 8243 crores in 2018, INR 9617 crores in 2019, INR 11247 crores in 2020, INR 10560 crores in 2021 and INR 14663 crores in the year ending 2022. The revenue can be segregated as - 56% from core healthcare services and 9% from Apollo Health and Lifestyle, including Clinics, Diagnostic Centres, Dental, Dialysis and Fertility centres. Another 35% comes from the Pharmacy Distribution.

Bottom Line

On the other hand, the profit recorded has grown exponentially from Rs. 117 crores by a whopping 802.5% over the course of 5 years. The highest growth can be seen in the financial year 2021-22, when the bottom line grew 10 times. This can be attributed to a significant increase in revenue with a reduction in selling, general and administrative expenses.

Net Worth

The net worth of Apollo Hospitals Enterprise Ltd has stayed fairly the same during the 3 years from 2018 to 2020. From the year 2021, it has grown by INR 1042.65 crores and has reached INR 5645.15 crores in the financial year ending 2022.