Shares of Apollo Hospitals Enterprises Ltd. ended 3.4 percent higher on Thursday after leading brokerage firms remained bullish on the stock.

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Jefferies has increased its price target on Apollo Hospitals to Rs 5,375 per equity share while maintaining a Buy call on the stock. The revised target implies a potential upside of 26 percent from Wednesday's close.

For the next and financial year 2025, Jefferies has raised Apollo's EBITDA margin estimates by 7-8 percent on the back of higher growth in group hospitals and the falling losses. of Apollo HealthCo Ltd.

Another brokerage firm, Citi, has maintained its Buy rating on the hospital chain stock and set a target price of Rs 5,420 per share.

Citi expects Apollo's margin expansion to continue over the next couple of years as the brokerage saw good traction across segments in the December quarter.

HSBC had a minor revision in its price target on Apollo Hospitals to Rs 5,330 from Rs 5,340 earlier. The brokerage cites tapering losses for the 24/7 business along with rising gross merchandise volumes (GMV) as a key catalyst for the stock going forward.

Motilal Oswal believes that Apollo Hospitals' return-ratios will expand by 300 basis points over financial year 2023-25. The brokerage has a price target of Rs 5,700.

In the December quarter, Apollo Hospitals’ revenue grew by 17 percent year-on-year, in line with the Street’s expectations. Its EBITDA margin narrowed to 11.9 percent from 16.1 percent last year and also missed estimates of 12.5 percent.

In the December quarter, Apollo Hospitals reported its highest-ever quarterly investments, while the burn rate peaked, said the company.

Shares of Apollo Hospitals ended 3.4 percent higher at Rs 4,640, and were the third best performers on the Nifty 50 index.

(Edited by : Rukmani Krishna)