Best Healthcare Stocks in India

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-

Top Healthcare Stocks in India in 2024 as per Market Capitalisation

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

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.