List of Hospital Sector Stocks in India (2024)

What are Hospital Stocks?

Hospital stocks refer to hospitals listed in the stock market that operate healthcare facilities, primarily hospitals. These stocks are part of the broader healthcare sector, but they focus specifically on the companies providing in-patient and out-patient services, surgeries, emergency care, diagnostics, and other related services. Investors are increasingly interested in hospital company stocks due to the continuous rise in healthcare demand, making this sector a robust growth area.

India’s hospital industry is on a strong growth trajectory. The sector has seen significant private equity and venture capital investments, surpassing US$ 1 billion in early 2024, marking a 220% increase from the previous year. Valued at around US$ 372 billion in 2023, the healthcare sector is a major employment generator. Private players are expanding beyond metropolitan cities into Tier 2 and Tier 3 locations, and the medical devices and diagnostics segments have witnessed rapid growth. The northern region, particularly cities like Delhi, Lucknow, and Chandigarh, stands out for housing some of the country’s top hospitals and medical institutions.

Top Hospital Company Stocks by Market Cap

India’s hospital sector is characterised by several key players, each with a unique value proposition. Here’s a hospital stock list of the top companies by market cap.

1. Apollo Hospitals Enterprise Ltd: With over 70 hospitals, Apollo Hospitals is one of the popular companies on the list of best hospital stocks to invest in because of its focus on quality healthcare and advanced medical infrastructure.
2. Max Healthcare Institute Ltd: Max Healthcare’s strong focus on specialised care, such as cancer treatment, cardiac care, and neuroscience, positions it among the top hospital stocks in India.
3. Fortis Healthcare Ltd: Known for its pan-India presence and wide range of speciality services, Fortis Healthcare is among the best hospital stocks to invest in.
4. Global Health Ltd: Global Health Ltd focuses on both premium healthcare services and value-based care. Its growing presence in tier-2 and tier-3 cities makes it one of the biggest hospital stocks in India.
5. Narayana Hrudayalaya Ltd: Known for its specialisation in cardiac surgery and care, this private hospital provides affordable, high-quality healthcare, making it an attractive investment for those looking for hospital sector stocks.

How to Identify Top Hospital Stocks

When identifying the best hospital stocks to buy, consider the following key factors:

• Market leadership: Companies with a dominant market position, like Apollo Hospitals, tend to offer more stability.
• Expansion plans: Hospitals that are expanding into new regions or specialities can offer growth potential.
• Profit margins: Hospitals with efficient operations and high margins are better positioned for profitability.
• Debt levels: Hospitals with manageable debt levels are safer bets, as high leverage can pose a risk during downturns.

Investors often find that pairing hospital stocks with pharmaceutical stocks creates a more balanced healthcare portfolio, capturing both patient care and medication supply.

How to Invest in Hospital Stocks via smallcase

Here is how you can invest in hospital stocks in NSE:

• Open a Demat/Trading/Stockbroker Account: Start by opening a demat account with a trusted stockbroker to enable online trading and investing in hospital stocks.
• Conduct Thorough Research: Identify the top hospital stocks in India that align with your investment goals. Utilise tools like the Tickertape Stocks Screener to refine your search. The screener offers 200+ built-in filters, allowing you to choose parameters such as market capitalisation, financial performance, growth trends, and more. This helps create a curated list of healthcare companies worth considering.
• Place a ‘Buy’ Order: Once you’ve selected the hospital stocks that meet your criteria, execute a ‘Buy’ order through your trading account to initiate your investment.

Factors Influencing Hospital Stocks

Several macroeconomic and sector-specific factors influence the performance of hospital company stocks:

• Healthcare demand: An ageing population and rising incidence of diseases boost hospital revenues.
• Government policies: Supportive policies, including healthcare subsidies and insurance schemes like Ayushman Bharat, have a positive impact on hospital stocks, including hospital penny stocks.
• Medical tourism: India’s growing reputation as a hub for affordable and quality healthcare attracts international patients, boosting hospital revenues.
• Technology and innovation: Hospitals adopting new technologies like telemedicine, robotic surgeries, and AI-driven diagnostics are likely to attract more patients and improve operational efficiencies.

Advantages of Investing in Hospital Stocks

• Stable growth: Healthcare is a non-cyclical sector, offering consistent demand regardless of economic conditions.
• Defensive sector: Hospital stocks tend to perform well even in economic downturns, as healthcare is a necessity.
• Growing market: With increasing healthcare spending and a growing middle class, the hospital stock market is set for rapid expansion.

Who Should Invest in Hospital Stocks?

• Long-term growth: The healthcare industry is expected to grow significantly, making hospital stocks attractive for long-term investors.
• Defensive play: Investors seeking a safe haven during volatile market conditions will find hospital stocks appealing.
• Exposure to healthcare: Investors looking to diversify their portfolio into the healthcare sector should consider hospital stocks.

Risks of Investing in Hospital Stocks

While hospital stocks present attractive opportunities, there are risks involved:

• Regulatory changes: Government policy changes in healthcare pricing or insurance schemes can impact revenues.
• High operational costs: Hospitals face significant fixed costs in maintaining infrastructure and healthcare personnel, making them sensitive to fluctuations in patient volumes.
• Competition: The entry of new players and increasing competition could squeeze profit margins.

To Wrap Up…

Hospital stocks in India offer a compelling investment opportunity due to the sector’s continuous growth and resilience. From well-established players like Apollo Hospitals and Fortis Healthcare to emerging names like Max Healthcare and Medanta, the hospital stock list offers a range of choices for investors. While there are risks to consider, the best hospital stocks to invest in can provide stable growth and act as a defensive asset in volatile markets.

Investors keen on entering this sector should carefully analyse the financial health of companies, the hospital stock price, and market trends. For those who prefer a diversified approach, investing through smallcase provides exposure to a basket of hospital stocks, offering both growth potential and risk mitigation.