Apollo Hospitals Enterprises is an Indian hospital chain. Acclaimed for pioneering the private healthcare revolution in India, the group has around 70 hospitals, 3,400 pharmacies, and 150 diagnostic centres across the country. The company is listed on the National Stock Exchange of India and currently has a market capitalisation of INR 161 billion.
Apollo Hospitals Enterprises shares have fallen heavily over the last month despite the fact that demand for hospital services is likely to be high in the coming months due to the coronavirus. A month ago, the healthcare stock was trading near INR 1,800. Today, however, the stock is trading at just INR 1,150. That represents a fall of 36%, which seems excessive given that the healthcare industry should be more insulated from the effects of COVID-19 than other industries.
Source: 2iQ Research
Examining insider transaction activity, we think it’s interesting that two insiders have purchased APHS stock in the last week. Combined, these insiders have purchased around INR 20 million (approximately USD $265,000) worth of stock, which represents the largest amount of insider buying since the second quarter of 2018. We see this buying activity as bullish. With multiple insiders taking advantage of the recent share price weakness, we think there’s a good chance the stock will rebound.