Apollo Hospitals vs Fortis Healthcare: Which is Better?
India’s healthcare sector is experiencing rapid growth, fueled by factors like rising disposable incomes, increasing healthcare costs, and a growing elderly population. Healthcare is crucial to human society for preventing diseases, diagnosing illnesses, treating conditions, and managing injuries.
In this blog, we will compare Apollo Hospitals and Fortis Healthcare.
Apollo Hospitals Enterprises Overview
Apollo Hospitals is India’s largest private healthcare provider and a global leader in integrated healthcare services. Dr. Prathap C. Reddy founded it in 1983, and it has led India’s healthcare revolution. The group provides a comprehensive range of services through a network of 73 hospitals across India and abroad, Apollo Pharmacy chains, primary care and diagnostic clinics, remote healthcare consultations, etc.
They introduced several groundbreaking medical procedures in India, such as coronary artery bypass surgery, organ transplantation, and telemedicine.
Fortis Healthcare Overview
Fortis Healthcare is one of the top healthcare services providers in India. It has many hospitals, clinics, and diagnostic centers in the country and abroad. The company is well-known for its wide range of medical services, advanced technology, and commitment to patient care. It was established in 1996 with the opening of the first Fortis Hospital in Mohali, Punjab. The acquisition of the healthcare division of the Escorts Group was a pivotal moment in Fortis’s growth. This move expanded its presence and strengthened its position in the healthcare market in India. The healthcare brand also has a presence in countries like UAE, Nepal, and Sri Lanka. Fortis offers various medical services like cardiology, oncology, orthopedics, neurosciences etc.
Company’s Comparative Study
| Particular | Apollo Hospitals Enterprises | Fortis Healthcare |
| Current Share Price | INR 6,771 | INR 546 |
| Market Capitalization (in INR Crores) | 97,407 | 41,240 |
| 52 Week High Price | INR 6,927 | INR 563 |
| 52-Week Low Price | INR 4,726 | INR 314 |
| FIIs Holdings (%) | 43.92 | 23.31 |
| DIIs Holdings (%) | 21.36 | 32.31 |
| Book Value per Share | INR 482 | INR 102 |
| PE Ratio (x) | 94 | 64.2 |
Financial Statements Comparison
Income Statement Comparison (FY 2024)
| Particular | Apollo Hospitals Enterprises | Fortis Healthcare |
| Sales | 19,059 | 6,892 |
| Total Income | 19,165 | 6,931 |
| Total Expenditure | 17,353 | 5,951 |
| Net Profit | 917 | 635 |
Balance Sheet Comparison (FY 2024)
| Particular | Apollo Hospitals Enterprises | Fortis Healthcare |
| Non-current Liabilities | 4,768 | 1,562 |
| Current Liabilities | 4,665 | 3,170 |
| Non-current Assets | 11,473 | 11,868 |
| Current Assets | 5,280 | 1,421 |
| Total Shareholder Funds | 6,935 | 7,663 |
Cash Flow Statement Comparison (FY 2024)
| Particular | Apollo Hospitals Enterprises | Fortis Healthcare |
| Cash Flow from Operating Activities | 1,920 | 1,100 |
| Cash Flow from Investing Activities | -1,537 | -886 |
| Cash Flow from Financing Activities | -311 | -86 |
Key Performance Indicators
| Particular | Apollo Hospitals Enterprises | Fortis Healthcare |
| Net Profit Margin (%) | 4.81 | 9.22 |
| ROE (%) | 12.95 | 7.81 |
| ROCE (%) | 14.97 | 9.52 |
| Current Ratio | 1.13 | 0.45 |
| Debt to Equity Ratio | 0.46 | 0.11 |
Conclusion
The comparison between Apollo Hospitals and Fortis Healthcare presented above leads us to conclude that while Apollo Hospitals has higher net profit, Fortis Healthcare posts higher net profit margins. Moreover, Apollo Hospitals has a higher ROE and ROCE metric than Fortis Healthcare. However, it is advised to speak with an investment expert before making investment decisions.
Frequently Asked Questions (FAQs)
Who is the founder of Apollo Hospitals?
Apollo Hospitals Enterprise Ltd. was established by Prathap C. Reddy in 1983.
Where was the first Fortis Hospital established?
The first Fortis Hospital was established in Mohali, Punjab.
Who is the chairman of Apollo Hospitals?
Prathap C. Reddy is the chairman of Apollo Hospitals.
Which company is more profitable: Apollo Hospitals or Fortis Healthcare?
Apollo Hospitals has a higher net profit of INR 917 crores compared to INR 635 crores for Fortis Healthcare for FY 2024.
Which company has a larger market capitalization: Apollo Hospitals or Fortis Healthcare?
Apollo Hospitals has a larger market capitalization than Fortis Healthcare as of 28 August 2024.
