Healthcare Stock to Buy Now as Citi Sees 41% Upside Potential

Synopsis: Citi maintains a high-conviction Buy on the stock with a Rs. 9,600 target, citing 41 percent upside, attractive valuations, strong healthcare demand, and an expected 17 percent EBITDA CAGR through FY28.

The company has established itself as Asia’s leading integrated healthcare services provider, with a strong footprint across the healthcare ecosystem, including hospitals, pharmacies, primary care and diagnostic clinics, and multiple retail health formats is now in the spotlight after Citi gave an upside target of 41 percent and expects 17 percent EBITDA CAGR by FY28.

With a market capitalisation of Rs. 97,915 cr, the shares of Apollo Hospitals Enterprise Ltd closed at Rs. 6,809.90 per share, up from its previous close of Rs. 6,797 per share. 

The stock has delivered 162 percent returns over the past five years, 2 percent down over the last year, declined 8 percent in the past six months, and is down 4 percent over the last month.

Citi on Apollo Hospitals 

Citi has reiterated a high-conviction ‘Buy’ rating on Apollo Hospitals, assigning a target price of Rs. 9,600 per share, which is 41 percent upside from the current levels, reflecting strong confidence in the company’s long-term growth prospects. 

The brokerage believes Apollo is well positioned to benefit from rising healthcare demand, operational efficiencies, and expanding margins across its business segments.

According to Citi, Apollo Hospitals is currently trading at attractive valuations relative to its growth potential and peers. The company has consistently delivered steady growth across both its hospital operations and HealthCo businesses. This consistency strengthens Apollo’s standing as a structurally strong healthcare player in India.

Citi also highlighted that Apollo Hospitals is among the most attractively priced healthcare stocks in India. The brokerage believes the company’s diversified business model and scalable healthcare ecosystem provide a strong runway for sustainable growth over the medium to long term.

On the operational front, Citi expects Apollo’s hospital segment EBITDA to grow at a CAGR of 17 percent through FY28. This growth outlook underscores the company’s ability to steadily enhance profitability while expanding capacity. Additionally, Citi projects that HealthCo’s margins could improve to nearly 7 percent by FY28.  

Apollo Hospitals Enterprise Ltd is India’s leading integrated healthcare provider, operating a large network of hospitals, pharmacies, and diagnostic services. The company benefits from a diversified business model, strong brand presence, and consistent growth driven by rising healthcare demand.

The company reports a ROCE of 16.6 percent and ROE of 18.4 percent, with a debt-to-equity ratio of 0.88. It has delivered a strong 33.7 percent profit CAGR over five years and maintains a healthy 21.5 percent dividend payout. 

The Inpatient Revenue Mix for H1FY26 reflects a diversified and balanced hospital revenue profile. Cardiology (19%) and Oncology (17%) are the largest contributors, highlighting a strong focus on high-acuity, specialized treatments, while Neuro and Orthopaedics (10% each) add scale. 

Other specialities like Internal Medicine, Gastro, General Surgery, and Nephro ensure breadth and stability. On the payor side, revenues are well spread with Insurance at 45%, Self-pay at 41%, and the rest from PSU/Government (9%) and IPS (5%), reducing overdependence on any single payor segment.

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