Apollo Hospitals Subsidiary Increases Stake in Keimed with ₹625 Crore Investment

Swift Summary

• Apollo Hospitals reported a consolidated net profit of Rs 372 crore for the December 2024 quarter, marking a 52% year-on-year increase from Rs 245 crore in the same period last fiscal.
• Subsidiary Apollo Healthco (AHL) plans to acquire an additional 11.2% stake in Keimed Pvt Ltd for rs 625.43 crore from Shobana Kamineni, a related party.
• AHL will also make an additional primary investment of Rs 99.99 crore in Keimed Pvt Ltd under an approved framework agreement with existing shareholders.
• The average target price for Apollo Hospitals shares has been set at Rs 7,814 by analysts, reflecting an 18% potential upside from current market prices.
• On Friday, Apollo Hospitals shares closed at Rs 6,621.5 on the BSE, rising by 2.3%. The stock has declined by approximately 10% year-to-date but witnessed a growth of about 55% over two years.

Indian Opinion Analysis

Apollo Hospitals’ strong quarterly results and strategic investments signify its focus on long-term growth across its healthcare ecosystem. The sharp rise in consolidated net profit reflects operational efficiency driven by higher sales performance.

The acquisition of Keimed Pvt Ltd stake enables deeper integration into pharmaceutical distribution channels-an area likely crucial to supporting hospital operations and strengthening supply chain access amid evolving healthcare demands in India.

Stock performance insights reveal mixed trends: while analysts maintain a bullish outlook with projected upside potential (average target price: ₹7,814), recent declines underscore short-term challenges that investors may consider before committing further capital.

Apollo’s ongoing expansion strategy aligns with India’s growing preference for private healthcare services amid rising income levels and concerns over public system inefficiencies but requires sustained financial discipline to balance aggressive ventures like these acquisitions effectively.

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