UBS has maintained a "buy" rating with a target price of Rs 6,050 on the stock of Apollo Hospitals. UBS's analysts have noted that industry data trends suggest a steady improvement in occupancy rates, which is a key indicator of a healthcare institution's performance.

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Currently, UBS predicts that the occupancy rate for Apollo Hospitals will rise to approximately 65 percent in the second quarter. This marks a notable uptick from the 62 percent occupancy rate recorded in the previous quarter. To provide further context, it's worth mentioning that during the base quarter, occupancy stood at 68 percent, largely due to the prevalence of vector-borne diseases.

According to the brokerage firm, the average revenue per occupied bed is expected to remain stable on a quarter-on-quarter basis. This implies a significant 15 percent year-on-year growth, suggesting that Apollo Hospitals is well-positioned to capitalise on the increasing demand for healthcare services.

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Furthermore, UBS anticipates that Apollo HealthCo, a subsidiary of Apollo Hospitals, will witness a steady reduction in losses. This reduction is expected to occur sequentially and can be attributed to several factors, including narrowing discounts.

Shares of Apollo Hospitals are trading 2.19 percent lower at Rs 5095.95. In stock has gained more than 5 percent in the past month.

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First Published:Sept 11, 2023 4:53 PM IST