Healthcare is a rapidly growing industry in India, and with the increasing demand for quality medical services, the sector has attracted the attention of many investors.
Investing in the healthcare sector can be a lucrative opportunity for those looking to diversify their portfolios and take advantage of the growth potential in this industry.
WHAT IS MARKET CAPITALIZATION AND WHY IS IT IMPORTANT WHEN INVESTING IN HEALTHCARE STOCKS?
Market capitalization is the total value of a company’s outstanding shares of stock and is used to determine the size of the company. When investing in healthcare stocks, market capitalization is one of the key factors to consider as it provides a measure of the company’s size and its potential for growth.
If you’re looking to invest in the healthcare sector in India, it can be challenging to determine which companies are the best candidates for investment. To make your decision easier, we’ve compiled a list of the top 8 best healthcare stocks in India, based on their market capitalization.
In this article, you’ll find a brief overview of each of these companies, and why they are attractive to investors.
TOP 8 BEST HEALTHCARE STOCKS LISTED IN INDIAN STOCK MARKET
Whether you’re a seasoned investor or just starting out, this article will provide you with valuable information on the top healthcare stocks in India and why they are worth considering as part of your investment portfolio. So, without further ado, let’s take a closer look at these 8 healthcare companies.
APOLLO HOSPITALS
Apollo Hospitals, established in 1983 by Dr. Prathap C Reddy, is a pioneering institution that revolutionized India’s healthcare landscape as the nation’s first corporate hospital. As the largest hospital chain in India, it operates 71 owned and managed hospitals, employing over 62,939 professionals.
With a market capitalization of ₹72,914 Cr. and a current price of ₹5,068, investing in Apollo Hospitals offers significant potential in the healthcare sector. The company’s facilities encompass self-owned hospitals, cradles, day care centers, and managed hospitals, providing a capacity of 10,261 beds across India and overseas.
In addition, Apollo Pharmacy, the largest branded pharmacy network in India, comprises over 3,800 outlets spread across 400 cities and towns, offering diverse wellness and private label products.
Furthermore, Apollo Healthcare and Lifestyle Limited (AHLL) operates around 950 retail touchpoints specializing in diagnostics, clinics, and specialized care services. With its extensive healthcare presence and proven profit growth, Apollo Hospitals presents an attractive investment opportunity in the healthcare industry.
MAX HEALTHCARE
Max Healthcare Institute Limited, a leading Indian hospital chain based in New Delhi, operates a network of 17 hospitals across the Delhi National Capital Region, Mohali, Bathinda, Dehradun, and Mumbai. As India’s second largest hospital chain, Max Healthcare has gained recognition for its exceptional financial performance, boasting a market capitalization of ₹58,873 Cr and a current price of ₹606.
The company has achieved an impressive profit growth of 115% CAGR over the past five years, a testament to its unwavering commitment to excellence. With approximately 85% of its beds strategically located in metropolitan areas, Max Healthcare is well-positioned to cater to the healthcare needs of urban populations.
This, coupled with its strong financial standing, presents a compelling investment opportunity for prudent investors looking to capitalize on the company’s success. By investing in Max Healthcare, not only can investors reap financial rewards, but they can also contribute to the advancement of quality medical care and the well-being of numerous individuals.
FORTIS HEALTHCARE
F0rtis Healthcare Ltd., a healthcare corporation established in February 1996, embarked on its journey by launching its inaugural healthcare facility in Mohali, Punjab in 2001. Committed to diverse healthcare verticals encompassing hospitals, diagnostics, and day care specialty facilities, the company currently operates a comprehensive network of 36 healthcare facilities across India, Nepal, Dubai, and Sri Lanka, boasting an impressive aggregate of approximately 4,000 operational beds.
With a remarkable market capitalization of ₹23,706 Cr. and a current price of ₹314, FHL stands as an enticing investment opportunity. Discerning investors seeking a dynamic investment avenue within the healthcare industry would find FHL an attractive prospect, poised to capitalize on its expansive reach, strong financial standing, and sustained growth trajectory.
NARAYANA HRUDAYALAYA
Narayana Hrudayalaya stands as a prominent and trusted name in the Indian healthcare industry, with a robust presence in South India.
With an unwavering focus on delivering top-notch healthcare services and an unwavering commitment to patient-centric care, the company has garnered a significant market cap of ₹20,108 Cr. Currently priced at ₹984, it presents an enticing investment opportunity.
The organization’s extensive facilities cover over 30 medical specialties, with three of its hospitals, including Narayana Institute of Cardiac Sciences and Health City Cayman Islands, holding prestigious JCI accreditation. Investing in Narayana Hrudayalaya not only aligns your financial interests but also supports a healthcare provider dedicated to excellence and compassion in patient treatment.
Take a look at Metropolis Healthcare Limited Share Price Target
GLOBAL HEALTH
With a market cap of ₹17,684 Cr., Global Health Limited emerges as one of the largest private multi-specialty tertiary care providers in the North and East regions of India.
Currently priced at ₹660, it presents an appealing investment opportunity. The company boasts a robust infrastructure with 2,467 installed beds across its operational hospitals. Moreover, it operates six multi-specialty clinics strategically located at DLF Cybercity Gurugram, Delhi Airport, south Delhi, Darbhanga, Patna, and Subhash Chowk Gurugram.
Investing in Global Health Limited allows you to tap into a thriving healthcare provider that offers comprehensive medical services and demonstrates a strong presence in key regions. By investing in this organization, you align your financial interests with a company committed to delivering quality healthcare to the community.
ASTER DM HEALTHCARE
Aster DM Healthcare Limited has achieved remarkable global expansion, making it one of the largest integrated private healthcare service providers in GCC countries and an emerging player in India.
With a strong presence in 7+ countries, the healthcare brand has established an extensive international network. The company’s market cap stands at ₹14,362 Cr., with a current price of ₹287, making it an attractive investment opportunity.
Notably, on its 35th anniversary on December 10, 2022, Aster DM Healthcare announced a significant milestone, with its healthcare facilities in the United Arab Emirates reaching a remarkable count of 455 units.
By investing in Aster DM Healthcare, you align your financial interests with a company that emphasizes quality healthcare services and prioritizes patient-centric care. With its impressive global reach and commitment to excellence, Aster DM Healthcare is poised to continue its growth trajectory and deliver value to its investors.
KRISHNA INSTITUTE
Located in Andhra Pradesh and Telangana, Krishna Medical Institution Ltd (KIMS) stands as one of the largest corporate healthcare groups in the region, renowned for its extensive patient treatments and offerings.
With a market cap of ₹14,085 Cr. and a current price of ₹1,756, investing in KIMS presents an enticing opportunity. The company operates nine multi-specialty hospitals under the esteemed KIMS Hospitals brand, boasting an impressive aggregate bed capacity of 3,064.
Notably, as of March 31, 2022, KIMS Hospitals maintains over 2,500 operational beds, surpassing its closest competitor in AP and Telangana by 2.2 times. By investing in KIMS, you align your financial interests with a healthcare group that dominates the market and possesses the infrastructure and expertise to provide exceptional medical care to a large patient base.
DR. LAL PATHLABS
Considering its incorporation in 2011, Dr. Lalchandani Labs Ltd has rapidly emerged as one of the largest players in the diagnostic industry, boasting a robust presence in North India. With a market capitalization of ₹10.8 Crores and a current price of ₹25.0, this company presents an attractive investment opportunity.
Over the past five years, it has demonstrated an impressive compounded sales growth rate of 13%, highlighting its consistent expansion and profitability. Moreover, Dr. Lalchandani Labs has earned notable recognition, including the CNBC TV18 Emerging Company of the Year award in 2008, the Best Diagnostic Service Company in India at VCCircle Healthcare Summit 2013, and the Diagnostic Service Provider Company of the Year 2012 by Frost & Sullivan.
Furthermore, the company’s unwavering focus on providing top-quality diagnostic services and its dedication to patient-centric care underscore its commitment to excellence. Considering these strong attributes and the company’s potential for continued success in the thriving healthcare sector, investing in Dr. Lalchandani Labs Ltd could prove to be a rewarding and prudent choice.
FAQS
What is market capitalization and why is it important when investing in healthcare stocks?
Market capitalization is the total value of a company’s outstanding shares of stock and is used to determine the size of the company. When investing in healthcare stocks, market capitalization is one of the key factors to consider as it provides a measure of the company’s size and its potential for growth.
What are some of the key factors to consider when choosing the best healthcare stocks to invest in?
Some of the key factors to consider when choosing the best healthcare stocks to invest in include the company’s reputation and expertise in the industry, its commitment to providing quality medical services, its financial stability and earnings potential, and its potential for innovation and growth.
How can I make an informed decision on which healthcare stock to invest in?
To make an informed decision on which healthcare stock to invest in, you should conduct thorough research on the company and its financial performance, consult with a financial advisor, and consider your own investment goals and risk tolerance.
What are the potential risks involved in investing in healthcare stocks?
The potential risks involved in investing in healthcare stocks include market volatility, changes in healthcare policies and regulations, and changes in the company’s financial performance.
Is it advisable to consult with a financial advisor before investing in healthcare stocks?
Yes, it’s advisable to consult with a financial advisor before investing in healthcare stocks, as they can provide professional advice and guidance on the best investment strategies for your financial goals and risk tolerance.
How does investing in healthcare stocks compare to investing in other types of stocks?
Investing in healthcare stocks carries its own set of risks and rewards and should be considered as part of a well-diversified portfolio. The growth potential and stability of the healthcare sector can make it a valuable addition to a portfolio, but it’s important to consider all factors and consult with a financial advisor before making any investment decisions.
CONCLUSION
The healthcare sector in India is flourishing at an astounding pace, presenting a captivating and enticing opportunity for investors to broaden their portfolios and reap the abundant rewards of its immense growth potential. The top 8 healthcare stocks listed in this article, based on their market capitalization, are Apollo Hospitals, Max Healthcare, Fortis Health, Narayana Hrudayalaya, Global Health, Aster DM Health, Krishna Institute, and Dr. Lal Path Lab.
Each of these companies has its own strengths and reasons for investment, from their reputation and expertise in the industry, to their commitment to providing quality medical services and innovative solutions. By considering these factors, you can make an informed decision on which healthcare stock is the best fit for your investment portfolio.
Remember, investing in the stock market always carries a certain level of risk, and it’s important to do your own research and consult with a financial advisor before making any investment decisions. With that being said, the healthcare sector in India is poised for continued growth and presents a promising opportunity for investors.
We hope that this article has provided you with the information and insights you need to make an informed decision on the best healthcare stocks to invest in.
What did we learn?
- 1 WHAT IS MARKET CAPITALIZATION AND WHY IS IT IMPORTANT WHEN INVESTING IN HEALTHCARE STOCKS?
- 2 TOP 8 BEST HEALTHCARE STOCKS LISTED IN INDIAN STOCK MARKET
- 2.1 APOLLO HOSPITALS
- 2.2 MAX HEALTHCARE
- 2.3 FORTIS HEALTHCARE
- 2.4 NARAYANA HRUDAYALAYA
- 2.5 GLOBAL HEALTH
- 2.6 ASTER DM HEALTHCARE
- 2.7 KRISHNA INSTITUTE
- 2.8
- 2.9 DR. LAL PATHLABS
- 2.10 FAQS
- 2.11 What is market capitalization and why is it important when investing in healthcare stocks?
- 2.12 What are some of the key factors to consider when choosing the best healthcare stocks to invest in?
- 2.13 How can I make an informed decision on which healthcare stock to invest in?
- 2.14 What are the potential risks involved in investing in healthcare stocks?
- 2.15 Is it advisable to consult with a financial advisor before investing in healthcare stocks?
- 2.16 How does investing in healthcare stocks compare to investing in other types of stocks?
- 3 CONCLUSION
