Best Healthcare Stocks in India 2024

Healthcare stocks give you a chance to invest in the vital healthcare industry, a sector known for its resilience and consistent returns compared to more volatile markets. Healthcare in India, like any other place, is very important. It has seen some rapid growth driven by advancements in technologies and an increasing focus on wellness. 

Since the sector flourishes, this gives you a good opportunity to invest in companies that are making real differences in people's lives. This article provides an overview of the healthcare industry and also includes a list of the best healthcare stocks in India that you may consider for your portfolio. So, let’s get started.

Healthcare Industry in India

The Indian healthcare sector is growing to become one of the country's biggest areas for revenue and jobs. This is because the population is growing at 0.92% each year, and there are over 100 million older adults, so the demand for health services is understandably on the rise.

This growth is not just about more people needing care it's also about jobs that are better paying and more people buying health insurance. As lifestyles change, so do health needs, which has led to the government spending more on healthcare.

As per IBEF healthcare industry hit $372 billion in 2023, and it is still growing. Some forecasts suggest it could reach over $638 billion by 2025. Thanks to people looking for better and more specialized healthcare, from hospitals to telemedicine and beyond. Big hospital chains and newcomers (fueled by private finances) are coming in to invest in the sector.

But then, despite all these advancements, India is still facing challenges like everyone not being able to access good quality healthcare. Things are looking good anyway since they are working hard to improve, which is driven partly by the wake-up call of the COVID-19 pandemic. The government and private sector now see the vital need to invest more in healthcare, and this promises a brighter future for all.

List of Best Healthcare Stocks in India

Best Healthcare Stocks in India - Overview

1. Fortis Healthcare

Fortis Healthcare Limited (FHL) is a preeminent Indian private hospital network with headquarters in Gurgaon. It was established with its inaugural facility in Mohali, Punjab, and the organization has since expanded its operations across the country. FHL's portfolio includes the renowned Fortis Memorial Research Institute (FMRI) in Gurgaon, which was globally recognized as the 23rd smartest hospital in 2021 and ranked 22nd best in India by Newsweek in 2022. 

The company has an extensive network that includes 36 healthcare facilities across India, Dubai, and Sri Lanka and offers many medical services. In a strategic move, Malaysia's IHH Healthcare acquired a controlling stake of 31.1% in Fortis Healthcare to further strengthen its position in the healthcare sector. This partnership has led to the appointment of key IHH Healthcare representatives to Fortis' board, which signals a new era of growth and international collaboration for the company.

FHL runs a massive network with 28 healthcare facilities and more than 400 diagnostic centers. They had a net profit of Rs 178.73 Cr in the second quarter of FY24, which shows they have good potential for short and long-term investment.  These factors make it one of the best healthcare stocks in India.

• Market Cap: Rs. 37,906 Cr

• Current Price: Rs. 502

• Return on Equity (ROE): 7.85%

• Debt-to-Equity Ratio: 0.15

• Return on Capital Employed (ROCE): 10.30%

• Facilities: 28+

• Location Presence: India, Sri Lanka, UAE

2. Apollo Hospitals Enterprise

Apollo Hospitals Enterprise Limited is a distinguished Indian multinational healthcare conglomerate with its headquarters in Chennai. It was established in 1983 by Dr Prathap C. Reddy as India's pioneering corporate healthcare provider. Apollo has grown to become the nation's largest for-profit private hospital network. 

The company has 71 owned and managed hospitals, and it offers many healthcare services, including pharmacies, primary care, diagnostic centers, telehealth clinics, and digital healthcare solutions. Apollo is committed to excellence, as evidenced by its hospitals being among the first in India to receive prestigious international accreditations, like JCI and NABH. This goes to strengthen its position as a leader in the Indian healthcare sector.

They have more than 10,000 beds and many pharmacies/diagnostics centers. In the second quarter of FY24, they had a net profit of Rs 253.80 cr, making it one of the top healthcare stocks in India.

• Market Cap: Rs. 96,246 Cr

• Current Price: Rs. 6,688

• Return on Equity (ROE): 13.70%

• Debt-to-Equity Ratio: 0.77

• Return on Capital Employed (ROCE): 15.60%

• Facilities: Numerous

• Location Presence: India

3. Global Health Limited (Medanta)

Global Health Limited, operating under the brand name Medanta, is another Indian for-profit private hospital network with headquarters in Gurgaon. It was founded in 2009 by renowned cardiac surgeon Dr Naresh Trehan and entrepreneur Sunil Sachdeva. Medanta is rapidly becoming a preeminent healthcare provider in India. 

Their flagship facility, which is Medanta - The Medicity, is a state-of-the-art 1250-bed super-specialty hospital in Gurgaon. Medanta has also expanded its presence with additional facilities in Indore, Ranchi, Sri Ganganagar, Lucknow, and Patna. The organization is known for its clinical excellence, consistently ranking among the best hospitals in different national and international surveys. 

Medanta is committed to providing the best medical technology and world-class patient care. This has positioned it as a leader in the Indian healthcare sector and has attracted many investments from global private equity firms and sovereign wealth funds. It was among the top 250 global hospitals in 2023. Furthermore, they are also specialists when it comes to critical care which makes them a good pick.

• Market Cap: Rs. 30,950 Cr

• Current Price: Rs. 1,152

• Return on Equity (ROE): 17.90%

• Debt-to-Equity Ratio: 0.28

• Return on Capital Employed (ROCE): 19.30%

• Facilities: Several

• Location Presence: Multiple cities in India

4. Krishna Institute of Medical Sciences (KIMS)

KIMS Krishna Institute of Medical Sciences (KIMS Ltd) is a prominent Indian hospital chain with headquarters in Telangana. It was founded in 2000 by Dr. Bhaskar Rao Bollineni and has grown into a network of 12 hospitals across Andhra Pradesh, Telangana, and Maharashtra. The group's flagship facility, KIMS Secunderabad, is a 1000-bed hospital that was established in 2004. 

KIMS is known for its clinical excellence, and it has certifications from NABH and NABL. The company has expanded its footprint to many cities and offers a total capacity of 4000 beds. In 2021, KIMS became a publicly listed entity on the BSE and NSE, and this marked a significant milestone in its growth trajectory. 

• Market Cap: Rs. 16,701 Cr

• Current Price: Rs. 2,084

• Return on Equity (ROE): 17.60%

• Debt-to-Equity Ratio: 0.74

• Return on Capital Employed (ROCE): 16.70%

• Facilities: 12

• Location Presence: India

5. Aster DM Healthcare

Aster DM Healthcare Limited is a multinational healthcare conglomerate that was founded in 1987 by Dr. Azad Moopen. Its headquarters is in Dubai, UAE, and is registered in Bengaluru, India. The company operates an extensive network of hospitals, medical centers, diagnostic facilities, laboratories, and pharmacies across six GCC countries. 

Aster DM Healthcare has a diverse portfolio, which includes three distinct brands: Aster, Medicare, and Access, catering to different segments of the healthcare market. The company has grown since its inception, expanding its presence through strategic acquisitions and partnerships. Aster DM Healthcare went public in 2018 and was listed on Indian stock exchanges. The organization continues to invest in technological advancements and digital transformation to enhance its healthcare delivery.

It remains an attractive option due to its diversified operations and strategic presence in critical markets. Its broad reach and operational diversity make it a good pick for long-term investment goals.

• Market Cap: Rs. 18,422 Cr

• Current Price: Rs. 369

• Return on Equity (ROE): 3.13%

• Debt-to-Equity Ratio: 0.42

• Return on Capital Employed (ROCE): 4.38%

• Facilities: Extensive

• Location Presence: GCC States, India

Factors to Consider Before Investing in Healthcare Stocks

When you're ready to invest in healthcare stocks, below are the factors you have to consider:

Regulatory Changes

You have to keep an eye on government rules like the new Pradhan Mantri Swasthya Suraksha Yojana. This is because regulations can either affect companies positively or negatively. For example, if the government slashes the prices of drugs, companies selling those drugs will see some dips in profit.

Advancements in Technology

Companies that invest in the latest tech will most likely be ahead. For example, if a company comes out with a new app that makes it easy to book a doctor's appointment, that will definitely attract more customers.

Market Trends

Watch the market trends and see if there's a sudden outbreak. One instance was during the COVID-19 pandemic. We all saw how everyone was suddenly looking to buy stocks in companies making vaccines or protective gear.

Due Diligence

Do not jump in blind do your research. Check out the company's financial health, read up on its leadership, and look at its track record. 

Risk Assessment 

Consider the risks. Even the best companies can have an off day. If you put all your money in one stock and it does not do well, that will mean a bad investment choice. Diversify your portfolio and spread out your investment to reduce the risk of a single blow taking you down.

How to Invest in Best Healthcare Stocks in India

Now that we’ve understood the factors to consider before investing in healthcare stocks, let’s look at the steps to invest in them:

• Research and find out the top-performing healthcare stocks in India

• Evaluate your risk appetite and fix your financial goals

• Shortlist the stocks based on market trends, fundamental and technical analysis

• Open Demat account and trading account through a trusted stockbroker

• Invest in the shortlisted stocks and monitor them regularly

Conclusion

In the end, investing in the best healthcare stocks in India offers great opportunities for investors to take advantage of a sector that is essential, resilient, and growing remarkably. With technological advancements and increased demand for quality services, the healthcare industry has become one of the best choices for investors. 

You can maximize your investment potential in this promising sector by carefully selecting stocks, staying informed about market trends, and diversifying your portfolio. Remember, a well-thought-out investment strategy is key to success, and platforms like Rupeezy can provide the tools and insights you need to make informed decisions.