Best Healthcare Stocks In India: Healthcare is the most crucial aspect of every person’s life. The healthcare industry monitors the emergence of medical issues. In India, population growth will inevitably lead to an increase in various health issues or self-care services. It is regarded as a defensive sector during times of economic uncertainty.

In this article, we will look at some of the best healthcare companies in India.

list Of Best Healthcare Stocks In India

Best Healthcare Stocks In India #1: Yatharth Hospital & Trauma Care

Yatharth Super Speciality Hospitals was established in 2008 and provides healthcare services with 1200 beds spread across three hospitals. Three superspecialty hospitals (300, 400, and 500 beds) have been established in Noida, Greater Noida, and Greater Noida West. This stock was recently listed on the bourses on August 7, 2023, with a listing price of 304 in BSE and a GMP of Rs. 4.

According to the most recent transcript, the company agreed to pay Rs 1,160 million for Asian Fidelis Hospital, a 200-bed facility in Faridabad. This will help to increase its presence in the Delhi-NCR region. Yatharth introduced robotic surgeries and expanded transplant services to include liver transplants. This indicates an emphasis on high-end healthcare services. 

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Yathrath operates and recognises its business segment under rendering hospital services. Income from medical and healthcare services provided most of their operating revenue in FY23. The company’s revenue from operations for FY23 stood at Rs. 520.29 crore as compared to Rs. 400.93 crore in FY22, an increase of 29.77%.

Net profits stood at Rs. 65.76 crore in FY23 as compared to Rs. 44.16 crore in FY22, an increase of 48.91%. The RoE was 43.87%. In the list of best healthcare stocks in India, we’ve seen Yatharth Hospital & Trauma Care.

ParticularsAmountParticularsAmount
CMP₹487.50Market Cap (Cr.)₹3,651.21
Stock P/E (TTM)39.09EPS (TTM)₹10.88
RoE (%)10.57%RoCE (%)16.92%
Promoter Holdings (%)66.33%Public Holdings (%)19.37%
Debt to Equity Ratio1.77Interest Coverage Ratio4.85
Current Ratio (TTM)16.18Net Profit Margin (%)12.57%

Best Healthcare Stocks In India #2: Dr Agarwal Eye Hospital

Dr. Agarwal’s was founded in 1994 in Chennai by the late Dr. Jaiveer Agarwal. They have increased their presence in India and Africa. It is currently present in 13 states & unions in India and international expansion started in Mauritius and increased to 10 countries in Africa. They serve customers from Ghana, Mozambique, Nigeria, Madagascar, Tanzania, Rwanda, and Uganda, among others.

The company offers specialised services in Refractive, Glaucoma, Cornea, Laser Correction, Retina, Cataract, Squint, Neuro-Ophthalmology, Pediatric Ophthalmology, Uvea, Orbit, and Oculoplasty. They intend to expand their presence in India and Africa by investing up to $150 million over two to three years.

The expansion includes combining ophthalmologist standalone hospitals with small local chains, as well as establishing new hospitals. This expansion is funded by an August fundraising campaign, internal accruals, and debt. So in August, they raised approximately $80 million from prominent investors such as TPG and Temasek. 

Agarwal Eye Hospital specialises in eye care sales and services. It sold opticals, pharmaceutical products, contact lenses, accessories, and food items, accounting for 24.43% of revenue; the remaining Surgery, consultations, treatments, and alignments accounted for the remaining 75.56% of revenue in FY23. 

The company’s revenue from operations stood at Rs. 267.89 crore in FY23 as compared to Rs. 201.21 crore in FY22, an increase of 33.13%. Net profits stood at Rs. 36.92 crore in FY23 as compared to Rs. 24.10 crore in FY22, an increase of 53.19%. The RoE stood at 18.22%.

ParticularsAmountParticularsAmount
CMP₹3,328.95Market Cap (Cr.)₹1,558.66
Stock P/E (TTM)36.36EPS (TTM)₹91.21
RoE (%)31.29%RoCE (%)17.15%
Promoter Holdings (%)71.90%Public Holdings (%)27.82%
Debt to Equity Ratio2.22Interest Coverage Ratio7.14
Current Ratio (TTM)1.26Net Profit Margin (%)12.57%

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Best Healthcare Stocks In India #3: Narayana Hrudayalaya

Narayana Hrudayalaya was incorporated in 2000 by Dr. Devi Shetty. The company operates as a provider of medical and healthcare services with a chain of multispecialty tertiary healthcare facilities. The hospital provides a wide range of medical services in fields including dermatology, haematology, neurology, orthopaedics, paediatrics, cancer care, cardiology, pulmonology, and more. 

Additionally, the hospital offers various surgical services, such as cardiac surgery, neurosurgery, thoracic surgery, renal transplant, and others. The diagnostics and support services provided by the hospital include imaging and radiology services, physiotherapy sessions, and blood bank services.

As per the recent transcript, For the next ten years, the majority of investments will be focused on increasing market share in Bangalore and Kolkata through organic and inorganic growth. The company incurred capex of INR 5 billion through Q3 FY24 and is on track to spend the remainder in Q4. The capex for FY25 is expected to be INR 1,200 crore.

Revenue from operations is recognised under Medical and Healthcare services, with India accounting for 79.94% and the rest of the world, which includes the Cayman Islands and St. Lucia, accounting for 20.05% in FY23. The company’s revenue from operations stood at Rs. 4,524.76 crore in FY23 as compared to Rs. 3,701.31 crore in FY22, an increase of 22.24%.

Net profits stood at Rs. 606.56 crore in FY23 as compared to Rs. 342.12 crore in FY22, an increase of 77.29%. The RoE stood at 29.48%. Narayana Hrudayalaya was one of the Best Healthcare Stocks in India that can be taken in consideration.

ParticularsAmountParticularsAmount
CMP₹1,371.50Market Cap (Cr.)₹28,966.00
Stock P/E (TTM)39.27EPS (TTM)₹36.09
RoE (%)29.48%RoCE (%)24.95%
Promoter Holdings (%)63.85%Public Holdings (%)14.43%
Debt to Equity Ratio0.44Interest Coverage Ratio9.94
Current Ratio (TTM)1.85Net Profit Margin (%)13.41%

Best Healthcare Stocks In India #4: Apollo Hospitals Enterprise

Apollo was incorporated in 1979 founded by Dr. Prathap C Reddy. Apollo Hospitals operates tertiary care hospitals specializing in various specialties including cardiology, oncology, and orthopedics. They also offer primary care, telemedicine, consulting, health insurance, education and training, and research services.

According to the recent transcript, the plans laid out for new hospitals in Pune, Hyderabad, Kolkata, and a brownfield expansion in Bangalore will be up and running by the end of the fiscal year 2025. There is an opportunity to increase a 200 basis points increase in margin in the upcoming quarters through various measures such as higher occupancy rates, improving payer mix, introducing new clinical programs, and optimizing doctor costs.

In FY23, Apollo recognised revenue from operations in Healthcare Services (52.20%), Retail Health & Diagnostics (7.41%), Digital Health & Primary Distribution (40.35%), and the remaining 0.04%.

The company’s revenue from operations stood at Rs. 16,612.50 crore in FY23 as compared to Rs. 14,662.60 crore in FY22, an increase of 13.29%. Net profits decreased 23.82% from Rs. 1,108.40 crore in FY22 to Rs. 844.30 crore in FY23.  In exceptional gain for FY22, it recorded a gain of Rs. 294.10 crore on the remeasurement of AMSHL. The RoE stood at 10.72%.

ParticularsAmountParticularsAmount
CMP₹6,631.85Market Cap (Cr.)₹89,574.00
Stock P/E (TTM)128.66EPS (TTM)₹48.42
RoE (%)10.72%RoCE (%)13.14%
Promoter Holdings (%)29.33%Public Holdings (%)6.87%
Debt to Equity Ratio0.71Interest Coverage Ratio4
Current Ratio (TTM)1.83Net Profit Margin (%)5.34%

Best Healthcare Stocks In India #5: Rainbow Childrens Medicare

Rainbow childrens medicare was incorporated in 1999 by Dr. Ramesh Kacharla. They offer a wide range of services to cater to the needs of its clients. These services include gynecology, obstetrics, pediatric quaternary care,, pediatric multi-specialty services, obstetrics, and newborn and pediatric intensive care.

The obstetrics and gynecology services provided by the company are diverse and cover normal and complex obstetric care, multidisciplinary fetal care, perinatal genetic, and fertility care. They are expanding healthcare services to add 280 beds in FY23. Rainbow has signed up for a 125-bed hospital project in Coimbatore, and project work will start soon.

Project work is progressing for upcoming hospitals in Hennur (Bangalore), Rajahmundry (AP) and Gurgaon (NCR). Also, new spoke hospitals in Anna Nagar, Chennai (80 beds) and Sarjapur, Bangalore (90 beds) will open soon. The company categorizes its operations under the Medical and Healthcare services segment.

This segment encompasses revenue from hospital services, pharmacy sales, and medical service fees, which account for 98.91% of the total revenue. The remaining revenue, which represents 1.08%, comes from other operating income sources such as cord blood extraction, canteen income, sponsorship income, and other miscellaneous sources of revenue, as reported in FY23.

In FY23, the company’s revenue from operations stood at Rs. 1,173.57 crore as compared to Rs. 973.75 crore, an increase of 20.52%. Net profits increased 53.14% from Rs. 138.67 crore in FY22 to Rs. 212.37 crore. The RoE stood at 18.91%. Now we are at the end of list of best healthcare stocks in India.

ParticularsAmountParticularsAmount
CMP₹1,290.00Market Cap (Cr.)₹12,417.00
Stock P/E (TTM)56.53EPS (TTM)₹21.64
RoE (%)18.91%RoCE (%)19.48%
Promoter Holdings (%)49.83%Public Holdings (%)15.96%
Debt to Equity Ratio0.69Interest Coverage Ratio5.83
Current Ratio (TTM)4.92Net Profit Margin (%)18.10%

List of Other Best Healthcare Stocks in India

Let’s look at some of the Best Healthcare Stocks in India.

Stock NameCMPMarket Cap (Cr.)RoE (%)
Yatharth Hospital₹488₹3,65110.57%
Dr Agarwal Eye Hospital₹3,329₹1,55931.29%
Narayana Hrudayalaya₹1,372₹28,96629.48%
Apollo Hospitals₹6,632₹89,57410.72%
Rainbow Children Medicare₹1,290₹12,41718.91%
KMC Speciality Hospitals (India)₹89₹1,45621.53%
Indraprastha Medical₹264₹2,41625.95%
Vijaya Diagnostic Centre₹776₹7,93418.08%
Poly Medicure₹1,641₹15,74417.57%
Dr Lal Pathlabs₹2,549₹21,28119.34%

Read more: Polycab Vs KEI Industries

Conclusion

As we near at the end of the article Best Healthcare Stocks In India, we looked at some of the stocks which are in the healthcare sector in India. The industry is expected to expand as people’s life expectancy rises and technology and life expectancy advance. What are your thoughts on these companies’ potential in the healthcare industry? Let us know your views in the comments section below.

Written by Santhosh

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