Nifty stock dips 40% from its 52-week high. Should you buy? | Mint – Mint

Forex Market Stock Traders

Stock market today: One of the Nifty 50 stocks, Apollo Hospital share price has been under sell-of stress ever since it made its 52-week high of 5935.40 on NSE in November 2021. In YTD time, this hospital stock has corrected more than 25 per cent whereas it has remained bears’ favourite ‘sell on rise’ stock in last one month. So, it is obvious for the positional investors to look at Apollo Hospital shares while scanning a value pick when speculations are high about market making is bottom in near term.

According to stock market experts, Apollo Hospitals operating performance is continuously improving and its EBIDTA was slightly lower due to its investment in the digital subsidiary. They went on to add that the hospital company is well ahead of its digital peers as well. However, they maintained that the company is no more getting benefit of Covid-19 pandemic and its occupancy levels ar3e not expected to report any major surge in upcoming quarters.

Speaking on Apollo Hospital share price outlook, Yash Gupta, Equity Research Analyst at Angel One Ltd said, “We continue our neutral call on Apollo Hospitals. In 2HFY22 pharmacy business margins have come down significantly and the company is not able to increase its occupancy levels and now the company is also not getting any major benefit out of Covid business. Company is trading at EV/EBITDA of 24x near its last 5 years average. We continue with our neutral call on Apollo Hospitals.”

However, some experts see this slide in Apollo Hospital shares as a major opportunity for long term positional investors.

Commenting upon the slide in Apollo Hospital share price, Abhay Agarwal, Founder, and Fund Manager at Piper Serica — SEBI registered portfolio management service provider company said, “Share of Apollo Hospital has corrected in line with the market correction though the fall from the 52-week high may look steeper. The operating performance of the company continues to improve as per the last quarter results. The EBITDA was slightly lower due to investment in the digital subsidiary. Apollo continues to be a compelling investment due to its leadership position in the hospital, pharmacy, and telemedicine space. It is well ahead of its peers in the digital space. We believe that this correction in premium valuation is giving investors a very attractive opportunity to add this Nifty stock to their portfolio.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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