The healthcare industry in India is observing exceptional growth, and the volume of private equity deals in Asia-Pacific, especially in India is strong, indicating a strong spike, in investment activity. With the best healthcare stocks to buy in 2024, savvy investors looking for stability and growth potential must invest in India’s healthcare companies.
What are Healthcare Stocks?
Healthcare stocks means owning shares in companies that operate within the healthcare industry, such as hospitals, health insurance, pharmaceuticals, biotechnology, medical equipment, and healthcare services.
Top 10 Healthcare Stocks to Invest in 2024
- Apollo Hospitals Enterprise Ltd.
- Max Healthcare Institute Ltd.
- Krishna Institute of Medical Sciences Ltd.
- Aster DM Healthcare Ltd.
- Dr Lal Pathlabs Ltd.
- Fortis Healthcare Ltd.
- Global Health Ltd.
- GPT Healthcare Ltd.
- Artemis Medicare Services Ltd.
- Indraprastha Medical Corporation Ltd.
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Overview of Best Healthcare Stocks to Invest in India=
Apollo Hospitals Enterprise Ltd.
As one of Asia’s best private healthcare providers, Apollo Hospitals Enterprise Limited (AHEL) has a solid presence in every sector of the healthcare marketplace, including primary care facilities, pharmacies, hospitals, and diagnostic clinics.
It is anticipated that Apollo Hospitals Enterprise will see annual growth in earnings and sales of 35.9% and 15.2%, respectively. An annual growth rate of 36.5% is projected for EPS, and a 20.9% return on equity is projected in three years.
Max Healthcare Institute Ltd.
Max Healthcare Institute is among the leading and most forward-thinking healthcare providers in India, offering a comprehensive range of services and a solid financial foundation.
Max Healthcare Institute Limited is a for-profit private hospital organisation with more than 4800 physicians and more than 3500 beds spread over 17 locations in India. Compared to the sector P/E of 32.98, the company’s TTM P/E ratio is 63.04.
Krishna Institute of Medical Sciences Ltd.
KIMS, or Krishna Institute of Medical Sciences Ltd.., is a renowned healthcare institution based in Secunderabad, Telangana, India. Boasting a revenue of ₹606.00 Crores in Q3FY24, the company—founded in 1973—shows excellent financial success as it provides extensive healthcare services spanning many cities.
KIMS has established itself as a leading corporate healthcare organisation in Andhra Pradesh and Telangana by providing specialised treatment across various departments and institutes.
Aster DM Healthcare Ltd.
The sale of Aster DM Healthcare Ltd.’s Gulf division to Alpha GCC Holdings Ltd. for $1.01 billion has been approved by the industry leader in the healthcare sector. The business intends to give its shareholders between 70 and 80% of the proceeds, which might result in a dividend of Rs 110 -Rs 120 per share.
To further prove its dedication to growth and development in the Indian healthcare sector, Aster DM Healthcare also plans to add 1,500 beds to its multispecialty medical centres throughout India. The company has budgeted between ₹800 and 850 crore for this purpose.
Dr Lal Pathlabs Ltd.
One of India’s top brands for diagnostic services, Dr Lal PathLabs Ltd.. provides an extensive range of medical tests and solutions to individuals, hospitals, healthcare professionals, and corporations. The company recorded a 10.22% growth in sales for Q3FY24, hitting ₹539.00 Crores, and a total net profit of ₹82.00 Crores, reflecting a 51.85% rise over the same quarter the previous year. These results demonstrate the company’s outstanding financial performance.
Fortis Healthcare Ltd.
Reflecting its dedication to sustainable growth, Fortis Healthcare Ltd. is committed to growth and diversification, preserving its position as the nation’s top diagnostic brand in Tier 2 and 3 markets.
Fortis Healthcare Ltd.’s mid-year price estimate might reach ₹448.75 in a bullish market. Based on favourable market trends, Fortis Healthcare Ltd.’s price goal may potentially reach ₹520.25 by the end of 2024.
Global Health Ltd.
Global Health Ltd. offers an appealing healthcare stock investment opportunity for 2024 due to its wide range of pharmaceutical offerings, hospital services, and robust financial health. The TTM P/E ratio for Global Health is 56.99, while the sector P/E is 32.98.
As of 29 February 2024 IST, the stock price of Global Health Ltd.. is ₹1,364.35 (BSE) and ₹1,364.20 (NSE). Over the previous year, Global Health Ltd.. has provided a return of 175.65%.
GPT Healthcare Ltd.
Offering extensive services across 35 fields, GPT Healthcare Ltd.. is a well-known healthcare company in Eastern India. It operates under the name of ILS Hospitals. Investor trust in the company’s potential for growth can be seen by its successful initial public offering (IPO), which raised Rs 525.14 Crores and had an 8.52 times subscription rate. Solid financials and a wide range of healthcare services make the corporation an excellent choice for investors looking to buy healthcare stocks in 2024.
Artemis Medicare Services Ltd.
With a market valuation of Rs 2,353.10 crore as of 2024, Artemis Medicare Services Ltd.’s current position indicates its
strong presence in the Hospitals & Allied Services industry. Artemis Medicare Services Ltd. appears to be an attractive healthcare company for investment in 2024 with a favourable price trend, a remarkable 166.05% share price rise over the past year, and an anticipated 43.06% annual profits growth rate.
Indraprastha Medical Corporation Ltd.
By offering complete, superior hospital services at a reasonable cost, Indraprastha Medical Corporation primarily aims to improve the quality of life for its patients. With a profitability score of 67/100 and a remarkable 25% revenue increase over the past three years, Indraprastha Medical Corporation Ltd. exhibits high profitability for investors looking to invest in the healthcare sector.
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Latest Performance of Top 10 Healthcare Stocks
| Company Name | Mar Cap (in Cr.) | ROCE % | CMP / BV | Debt / Eq % | ROE % | P/E | Div Yld % |
| Apollo Hospitals Enterprise Ltd. | ₹88,187 | 14.5 | ₹6,133 | 71.1 | 13.7 | 112 | 0.24 |
| Max Healthcare Institute Ltd. | ₹74,867 | 15.0 | ₹770 | 0.093 | 16.1 | 70.8 | 0.13 |
| Krishna Institute of Medical Sciences Ltd. | ₹17,851 | 23.7 | ₹2,231 | 0.00 | 21.3 | 52.8 | 0.00 |
| Aster DM Healthcare Ltd. | ₹ 23,357 | 9.21 | ₹468 | 0.625 | 11.0 | 64.1 | 0.00 |
| Dr Lal Pathlabs Ltd. | ₹ 19,483 | 18.2 | ₹ 2,334 | 0.174 | 15.0 | 59.1 | 0.77 |
| Fortis Healthcare Ltd. | ₹ 30,398 | 9.83 | ₹ 403 | 8.1 | 7.77 | 56.8 | 0.25 |
| Global Health Ltd. | ₹ 35,461 | 17.1 | ₹ 1,321 | 0.04 | 16.2 | 78.5 | 0.00 |
| GPT Healthcare Ltd. | ₹ 1,574 | 25.5 | ₹ 192 | 0.39 | 23.9 | 40.7 | 0.00 |
| Artemis medicare services Ltd. | ₹ 2,353 | 11.4 | ₹ 173 | 0.66 | 10.1 | 51.6 | 0.26 |
| Indraprastha Medical Corporation Ltd. | ₹ 1,666 | 34.3 | ₹ 182 | 0.0065 | 24.6 | 14.8 | 1.65 |
Overview of the Healthcare Industry in the Indian Market
The health-tech industry in India is anticipated to reach approximately 5000 crores by 2033, growing at a 39% CAGR. Due to favourable government regulations, opportunities for pharmaceutical production, and the promise of biologics and generics, the private equity sector is investing heavily in the Indian healthcare sector.
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Advantages and Risks Associated with Investing in Healthcare Stocks
Due to its significant potential for growth, low penetration, and excellent potential, in addition to its favourable demographics and epidemiology, rising awareness and affordability, innovation, and digitisation, the healthcare industry in India is one of the most profitable and promising for investors.
However, it is also prone to regulatory changes, economic conditions, and market volatility. It is essential to note how sensitive the healthcare sector is to systemic risks like inflation and cyclical variations. Furthermore, because the industry is competitive and dynamic, it is imperative to remain current on worldwide trends and advances.
How to Start Investing in Healthcare Stocks?
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Here are three easy steps to start investing in Infrastructure stocks:
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Conclusion
Conducting due research is always the first step when considering a new investment in healthcare stocks or another market sector. Investors should do their due diligence, monitor market movements, and consider how government regulations and world events may affect these stocks. If done carefully and with well-informed judgement, investing in Indian healthcare stocks may be an attractive opportunity.
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