Best Healthcare Stocks in India

23 April 2024
9 min read
Best Healthcare Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

From routine check-ups to life-saving treatments, the healthcare industry plays a vital role in ensuring our well-being. With the rising incidence of lifestyle diseases and the escalating costs of healthcare, there is a growing demand for accessible and affordable medical services. Moreover, the increasing penetration of health insurance and government initiatives like e-health is further propelling the growth of the healthcare market.

Healthcare Industry in India - A Brief Overview

The healthcare industry in India comprises hospitals, medical devices, medical equipment, clinical trials, telemedicine, outsourcing, medical tourism, health insurance and more. It is growing rapidly due to improvements in coverage, services and increased spending by both the government and private sectors.

India's healthcare system is divided into 2 parts - public and private. The public sector focuses on providing basic healthcare services, mainly through Primary Healthcare Centers (PHCs) in rural areas, while the private sector offers most secondary, tertiary, and advanced care services, primarily in cities.

The Indian government has introduced several initiatives to enhance healthcare services, including the National Health Mission, Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), PM National Dialysis Programme, National Medical Commission and others. These initiatives aim to improve access to healthcare, especially for vulnerable populations, and promote better healthcare infrastructure across the country.

Moreover, according to a report, the healthcare industry is projected to exceed $610 billion by 2026. This growth is driven by increasing demand for specialised and higher-quality healthcare services. As India continues to develop economically and technologically, there is a rising need for advanced medical facilities and services, which is expected to fuel further expansion in the healthcare sector.

Best Healthcare Stocks in India 2024 as per Analyst Ratings

The following table provides a curated list of the best hospital stocks in India sorted as per analyst ratings provided by the I/B/E/S databases. We have chosen analyst ratings as a criterion because stock analysts rate a stock after careful market analysis and the company’s performance-

S.No.

Healthcare Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Fortis Healthcare

91

2.

Apollo Hospitals Enterprise

82

3.

Global Health Limited

80

4.

KIMS

80

5.

Aster DM Healthcare

67

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Healthcare Stocks in India in 2024 as per Market Capitalisation

The following table mentions the top healthcare stocks according to market capitalisation:

S.No.

Healthcare Stocks in India (as per market capitalisation)

1.

Apollo Hospitals Enterprise

2.

Max Healthcare Institute

3.

Global Health Limited

4.

Fortis Healthcare

5.

Narayana Hrudayalaya

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Healthcare Stocks in India as per Analyst Ratings 

To get a detailed overview of the best healthcare sector stocks as per analyst ratings, keep reading:

1) Fortis Healthcare

With around 28 healthcare facilities, over 400 diagnostics centres and more than 4,500 operational beds, Fortis Healthcare is one of India’s renowned integrated healthcare service providers.

It provides a wide range of services, from clinics to quaternary care facilities and ancillary services. The company’s specialities include dental sciences, cosmetology, radiology, neurosurgery, orthopaedics, pulmonology, cardiac sciences, renal sciences, organ transplant and more. 

Additionally, it owns and operates multiple multi-speciality hospitals and super-speciality centres across India. In India, Fortis Healthcare operates in Karnataka, Delhi, West Bengal, Punjab, Haryana, Rajasthan, Uttar Pradesh, and Maharashtra. The company also operates in various countries like Sri Lanka and the United Arab Emirates. 

2) Apollo Hospitals Enterprise

Incorporated in 1983, Apollo Hospitals Enterprise is a healthcare company providing a wide range of hospital, pharma and wellness products and services to customers.

The company is divided into several segments, including healthcare services, digital health and pharmacy distribution, retail health and diagnostics and others. Its healthcare services segment focuses on hospitals and hospital-based services. The digital health and pharmacy distribution segment is involved in procuring and distributing fast-moving consumer goods, pharmaceuticals and private-label products through digital platforms. 

On the other hand, the retail health and diagnostics segment encompasses clinics and diagnostic services. Apollo Hospitals Enterprise comprises 10,000+ beds, 5,000+ pharmacies, 1,500+ diagnostics centres, 378+ primary care clinics, 15+ medical education centres and 200 telemedicine centres. Furthermore, Apollo Hospitals operates medical facilities in Bangladesh, Mauritius and the UK. 

3) Global Health Limited

Global Health Limited (GHL), also known as Medanta, is an Indian company that offers specialised healthcare services across the North and East regions of India.

Medanta provides a wide range of treatments for various medical conditions, including cancer,  prostate cancer, coronary artery disease, Parkinson's disease, kidney disease, epilepsy, stroke, sepsis, liver issues, fractures, vision problems, arthritis, asthma and more. The company specialises in fields such as cardiac surgery, nephrology, urology, dermatology, ophthalmology, radiology, dental care and interventional cardiology.

In addition to medical treatments, Medanta offers convenient services like medicine delivery, lab tests, diagnostics and homecare bookings. The company delivers high-quality healthcare services to patients through its network of facilities and telemedicine channels. 

Medanta operates 5 hospitals and 6 Mediclinic facilities in cities like Delhi, Gurugram, Indore, Ranchi, Patna and Lucknow. Newsweek also featured this company in the list of top 250 global hospitals in 2023.

4) KIMS

Krishna Institute of Medical Sciences Limited primarily provides medical and healthcare services. Its departments cover a range of specialities, including accident care, andrology, Alzheimer's treatment, paediatric renal care, gastrointestinal oncology, general surgery, paediatric oncology, paediatric surgery, female urology, fertility treatments, heart wellness and more.

Its institutes cater to specialised areas, including dental sciences, cardiac sciences, neurosciences, heart and lung transplantation, and gastroenterology and hepatology. Operating under the brand ‘KIMS Hospitals’, the institute manages 12 multi-specialty hospitals with a total capacity exceeding 4,000 beds. It has more than 25 specialities and superspecialities.

5) Aster DM Healthcare

Aster DM Healthcare Limited is a healthcare provider with various segments, including hospitals, clinics, retail pharmacies and others. In the hospitals segment, the company operates hospitals along with in-house pharmacies.

The clinics segment comprises clinics with in-house pharmacies, while the retail pharmacies segment includes standalone retail pharmacies and optical outlets. The other segment offers healthcare consultancy services.

Geographically, the company operates in the Gulf Cooperation Council (GCC) States, which include the United Arab Emirates, Qatar, Oman, Saudi Arabia, Jordan, Kuwait, Bahrain, as well as India. Aster DM Healthcare offers healthcare services under brands like Aster, Medcare and Access. The company runs a network of over 34 hospitals, 131 clinics, and 502 pharmacies (including 255 pharmacies in India operated by Alfaone Retail Pharmacies Private Limited under licence from Aster). Furthermore, it has 1 reference lab, 235 Patient Experience Centers (PEC) and 15 satellite labs in India.

Factors to Consider Before Investing in Healthcare Stocks in India

When considering investment in healthcare industry stocks, it is important to consider a few key factors that can affect their prices:

  • Digital Technology 

There has been a rapid adoption of digital technology in the healthcare market like e-pharmacy, online consultations, telemedicine, health apps and more. You must ensure the company in which you are investing provides such services.

  • Economic Conditions

You must keep an eye on factors like interest rates, GDP growth, inflation, employment levels and currency exchange rates. A strong economy usually means more healthcare spending, which boosts healthcare companies' earnings. On the other hand, economic downturns can reduce demand for healthcare services, hurting stock prices.

  • Geopolitical Events

Pay attention to events like trade wars or economic sanctions. These events can mess with the supply chains of hospital products, making it hard for companies to meet the demand for their products or services. That can drive down stock prices.

  • Industry Trends

Stay updated on the latest trends in healthcare. Advances in technology, shifts in consumer preferences, and new treatments can all shake up stock values. Furthermore, keeping tabs on industry news helps you make smart investment choices.

Should You Invest in Healthcare Stocks?

If you are prioritising healthcare industry stocks, it is important to understand the limitations and risks associated with this sector.

While healthcare stocks offer stability, they are susceptible to market volatility, regulatory risks and uncertainties in clinical trials. Moreover, changes in healthcare policies and regulations can affect the financial performance of healthcare companies. Additionally, uncertainties in the outcomes of clinical trials can influence the success of new drugs and treatments, impacting investment outcomes. 

Despite their defensive characteristics, healthcare stocks can still experience market volatility due to factors like economic conditions and global events. Therefore, carefully evaluate these factors and consider their potential impact on your financial goals and risk tolerance before you make an investment decision. 

The Bottom Line 

Before buying hospital stocks, it is crucial to conduct thorough research.

You should carefully analyse market trends, monitor government regulations, and stay informed about global events and other important factors that could impact these stocks. Furthermore, you can also seek guidance from financial experts or consult with a trusted investment advisor to gain valuable insights.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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