The Hindu Business Line : Apollo Hospitals hits 52-week high

THE stock of Apollo Hospitals Enterprise Ltd today shot up by 15.03 per cent on major bourses with substantial jump in volumes. The combined traded quantity in the counter was around 17.5 lakh shares.

According to market sources, the increased interest could be attributed to the unconfirmed news of a fresh preferential allotment. Fund buying is understood to have emerged in the counter, triggering speculation that the company may again consider preferential allotment to an overseas investor. However, this could not be confirmed by the management.

In the recent months, the company had made preferential allotment to Maxwell (Mauritus) Pte, Arnada Investments (Mauritius) Pte and Temasek Capital (Private) Ltd, an investment arm of the Singapore Government.

As on December 31, 2004, FIIs were holding 24.77 per cent in the company, while promoters and the public holdings were placed at 30.09 per cent and 18.63 per cent respectively.

According to Mr Rajesh Agarwal, Chief Analyst of CD Equisearch, fundamentally the company has recorded smart growth this fiscal. "In the health tourism, consultancy and medical BPO space, Apollo Hospitals has been making significant strides," he added.

Its tie-ups with health insurance companies have put it on long-term growth path.

Mr S. Upadhya of Anagram Stockbroking, however, said that at today's price of Rs 330, the 52-week high, the stock traded at 28 times its nine months' annualised earnings, which appeared stretched.

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