At its current market price of Rs 58, the discounting is compelling at 10 even after the recent rally at the counter. Moreover, the price-to-book value is still attractive at 1.35. Another factor which has aided the rise in the stock is the dividend yield of 8.33 per cent in just two months. For the year ended March 1999, the company announced a dividend of 25 per cent or Rs2.5 per share. The company has been posting a steady growth of 10-15 per cent. In fiscal 1998-98, the company posted a turnover of Rs 98.04 crore and a net profit of Rs 9.27 crore.

On an equity base of Rs 15.8 crore, the earning per share works out to Rs 5.8. However, investment at current levels is avoidable until a clearer picture emerges on the corporate front.

The ambitious expansion plan, which includes setting up of hospitals in Ludhiana, Lucknow, Ahmedabad, Vizag and possibly Calcutta and Mumbai, will add to the company's revenues in the next two to three years. Abroad, after Dubai and Muscat, the company is looking at East Africa and Sri Lanka and Bangladesh. Apollo Hospitals has drafted a strategy of roping in joint venture partners for each of the centres who will bring in a substantial part of the finances. For example, in Punjab and Uttar Pradesh, the funds have reportedly been tied up from corporate entities and Apollo will charge a royalty for the use of its name. The expansion drive willtranslate into an additional 2000 beds over the next two-to-three years. Apollo Hospitals is looking at various options to bring in the needed investment, including raising money through ADRs and Nasdaq listing. According to officials, the company intends to stick to the 1:1 debt-equity ratio and is negotiating with major medical equipment manufacturers for suppliers' credit.