On Thursday, Apollo Hospitals Enterprise gained 4% in the early trade, sustained by its growth plans, to hit Rs 4,830 on the NSE, its chief level since December 22, 2022.

The company plans to take bed occupancy for its core hospital business to 70% by FY24 end, Apollo Hospitals MD Suneeta Reddy said in an earnings call. The bed occupancy level in Q4 was 64%.

According to Reddy, Apollo will reach its occupancy goal under several strategies, reducing dependency on institutional patients, prioritising worldwide patients, increasing doctor recruitment, and improving the payor mix. Additionally, the company plans to capitalise on its corporate relationships to rouse additional growth.

Moreover, the healthcare major plans to reduce investments in its Apollo 24/7 arm by Rs 135-150 crore, easing pressure on its working margins.

At 10.31 am, Apollo Hospitals Enterprise shares were trading at Rs 4,810, with gains of 4.10% on the NSE, being the top Nifty 50 gainer. Seven lakh shares changed hands against the one-month daily traded average of four lakh shares. At 12.34 pm, the share traded at Rs 4,806 on the NSE, up 3.98% from the previous day.

Motilal Oswal upholds a positive outlook on Apollo Hospitals, citing the company’s reliable efforts to recover growth and profitability in healthcare services and real cost management measures. It has a “buy” call for the stock and a price target of Rs 5,450.

Nuvama Institutional Equities believes Apollo’s steady pharmacy growth and robust business standard provide comfort. The broking firm retained its “buy” call and raised its target price by 4% to Rs 5,555.

Despite maintaining a “buy” call, Jefferies cut the price target to Rs 5,300 from Rs 5,375 to factor in lower-than-estimated operating margins in Q4.

Choice Broking had begun coverage with an “add” recommendation and a price target of Rs 5,160.