Posted on February 12, 2025, by Niftynews
Apollo Hospitals shares experienced a notable 3% rise on February 12, 2025, just ahead of its dividend record date. The stock’s increase follows the company’s announcement of an interim dividend of ₹9 per share, which is set to be paid out by February 28, 2025. This positive movement in Apollo Hospitals share price has garnered attention from investors, especially those hoping to benefit from the upcoming dividend.
Apollo Hospitals Share Interim Dividend Declaration
Apollo Hospitals, one of the leading names in the healthcare industry, has declared an interim dividend of ₹9 per share for the financial year ending March 31, 2025. This dividend, representing 180% of the ₹5 face value per share, will be distributed to shareholders whose names appear on the company’s books as of the record date, February 15, 2025. Investors holding Apollo Hospitals share on this date will be eligible to receive the dividend by February 28, 2025.
The announcement of the dividend has had a direct effect on Apollo Hospitals share price, providing a boost to investor sentiment. Given the market’s focus on the company’s future growth prospects and financial stability, this dividend serves as an additional incentive for investors to hold onto their shares before the record date.
Apollo Hospitals Share Price Movement: A Strong Recovery
Following the dividend announcement, Apollo Hospitals stock made a strong recovery after a recent dip to a six-month low. On February 12, 2025, the Apollo Hospitals share price climbed by 2.86%, closing at ₹6,496.10 per share on the Bombay Stock Exchange (BSE). This surge in share price came after the stock had endured a four-day losing streak, signaling a possible rebound for the company in the short term.
Despite the positive movement, the Apollo Hospitals share price remains about 19% below its 52-week high of ₹7,973. On the other hand, the stock is currently trading roughly 37% higher than its 52-week low of ₹4,749, indicating that there is potential for future growth in the company’s stock. Investors will be keen to see whether this positive momentum continues, especially with the dividend announcement acting as a catalyst for growth.
Q3 FY25 Performance Drives Apollo Hospitals Share Confidence
Apollo Hospitals reported strong performance in its Q3 FY25 results, further fueling confidence in the company’s stock. The company posted a 14% year-on-year (YoY) increase in revenue, reaching ₹5,527 crore. This solid growth in revenue was accompanied by a 52% YoY surge in consolidated profit after tax (PAT), which reached ₹372 crore, compared to ₹245 crore in Q3 FY24. Additionally, the company’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 24% YoY, amounting to ₹762 crore.
As of December 31, 2024, Apollo Hospitals had 7,996 beds across its network, excluding Apollo Health and Lifestyle (AHLL) and managed beds. The overall occupancy rate improved to 68%, up from 66% in the previous year. This increase in occupancy was driven by a significant rise in patient flow, which contributed to the company’s strong financial performance and has positively impacted the Apollo Hospitals share price.
Future Outlook for Apollo Hospitals Share: Analysts’ Predictions
Despite delivering impressive results for Q3, analysts, including Motilal Oswal Financial Services (MOSL), have slightly revised their earnings estimates for FY26 and FY27 by 4% and 5%, respectively. This revision is attributed to the expected slowdown in the growth of Gross Merchandise Value (GMV) for Apollo 24/7, the company’s online healthcare platform, as well as rising operating expenses tied to its hospital expansion efforts.
However, MOSL has maintained a ‘buy’ rating for Apollo Hospitals, adjusting its target price to ₹7,800 from ₹8,000. The brokerage emphasized that Apollo Hospitals has continued to achieve broad-based growth across its hospital network, health services, and the AHLL segment, all of which contribute to its solid market position. These factors are expected to positively influence the Apollo Hospitals share price in the long run.
Conclusion – What Does This Mean for Apollo Hospitals Share Investors?
The announcement of the interim dividend has provided a much-needed boost to the Apollo Hospitals share price, offering investors some relief after a period of decline. The company’s strong Q3 performance and steady growth in various sectors underscore its dominant position in the healthcare market. However, analysts caution that challenges, such as the expected slowdown in GMV growth and increased operating costs, could affect short-term performance.
That said, Apollo Hospitals shares remain an attractive investment for long-term investors. The interim dividend adds extra value for those holding the stock before the record date on February 15, 2025. Investors will closely watch the company’s next moves, especially in terms of its expansion plans and digital healthcare platform, which may continue to influence Apollo Hospitals share price.
