List Of Best Healthcare Stocks in India 2024

With its emphasis on disease prevention, illness diagnosis, treatment, and injury management, healthcare plays an important role in human civilization. The objective of healthcare is to improve the health and well-being of individuals. India’s healthcare sector is rapidly growing, driven by factors such as increasing disposable income, rising healthcare expenses, and a growing elderly population. This surge has made the healthcare industry a fascinating investment option.

Today’s blog explores the best healthcare stocks in India that an investor can watch out for, their recent returns, and how the healthcare industry is poised for growth in the future.

Overview of the Healthcare Industry in India

The healthcare industry has emerged as one of the biggest contributors to India’s economy in terms of income and job creation. The Healthcare industry was valued at $372 billion in 2023 and employs around 7.5 million individuals. The Indian Government has introduced comprehensive changes to fortify the healthcare industry and launched favorable policies to attract Foreign Direct Investment (FDI). The Aatmanirbhar Bharat Abhiyaan initiatives include several immediate and long-term strategies for the healthcare sector, like PLI programs aimed at enhancing the production of pharmaceuticals and medical equipment domestically. The healthcare sector in India is witnessing interest from investors worldwide and within the country. Furthermore, the COVID-19 pandemic has highlighted the challenges facing the healthcare industry, and the companies are investing huge amounts to tackle them. 

Top Healthcare Stocks in India Based on Market Capitalization

List of Top Healthcare stocks based on the Market Capitalisation

The healthcare stocks have been listed in descending order based on their market capitalization in the table below:

Best Healthcare Stocks in India Based on Market Capitalization – An Overview

The best healthcare stocks in India are given below, along with a brief overview:

1. Apollo Hospitals Enterprise Limited

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.

2. Max Healthcare Institute Limited

Max Healthcare is a major private healthcare organization in India. It runs hospitals, diagnostic centers, and home healthcare services in several Indian states. The company is recognized for its emphasis on quality care, medical innovation, and patient-centered approach. It was started as a small medical center in Panchsheel Park, South Delhi, in 2000 and since then the organization’s growth trajectory has been remarkable.

Max offers a wide range of services, including medicine delivery, diagnostic centers, home healthcare, etc. The company is a leader in medical advancements and always focuses on improving its services.

3. Fortis Healthcare Limited

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.

4. Global Health Limited (Medanta)

Global Health is a leading tertiary and quaternary healthcare provider focused on dealing with complicated cases. It operates four hospitals under the “Medanta” brand name.

It was founded in 2009. Over the years, the company has continuously evolved and enhanced its healthcare software solutions to meet the evolving needs of the industry. Its focus on under-served areas with dense populations helps it achieve strong operational and financial performance.

5. Krishna Institute of Medical Sciences Ltd.

Krishna Institute of Medical Sciences Ltd., or KIMS Hospital Group, is a well-known healthcare provider in Telangana. Founded by Dr. Bhaskar Rao Bollineni, a well-known cardiac surgeon, KIMS has established a healthcare empire, providing an extensive array of medical services across various specialities. It has grown rapidly through both organic growth and strategic acquisitions. It has achieved a major milestone by building a main hospital in Secunderabad, Telangana. The group provides affordable and integrated healthcare services focused on tertiary and quaternary healthcare in more than 40 fields.

Top Healthcare Stocks Based on 1-year Return

The top healthcare stocks in India are:

The healthcare stocks have been listed in descending order based on their 1-Year return in the table below:

Best Healthcare Stocks Based on 1-year Return – An Overview

The best healthcare stocks according to 1-year return are given below, along with a brief overview:

Sharma East India Hospitals and Medical Research Limited

Sharma East India Hospitals and Medical Research Limited is a publicly listed company dedicated to providing medical and healthcare services. Its main project is the Jaipur Hospital, located in Rajasthan. The hospital has focused on providing healthcare services to the people of Rajasthan since it started in 1989. The Jaipur Hospital’s primary quality has been providing multi-speciality medical care and health facilities to the local community.

Indraprastha Medical Corporation Limited

Indraprastha Medical Corporation (IMC) is a public limited company that was established in 1988 as a Public Private Partnership (PPP) project. It is a joint venture between the Delhi government and Apollo Hospitals Group. The company mainly offers top-notch healthcare services through its main hospital, Indraprastha Apollo Hospitals, in Sarita Vihar, New Delhi. The hospital has become one of India’s top healthcare institutions, providing various advanced medical treatments. It is the first in India to do successful pediatric and adult liver transplants and is accredited by the Joint Commission International, indicating high standards of healthcare quality.

Artemis Medicare Services Limited

Artemis Medicare Services Limited (ASML), commonly known as Artemis Hospitals, is a prominent private healthcare provider in India, widely recognized for its flagship hospital in Gurgaon, Haryana. The hospital is well-known for its modern facilities, advanced medical technology, and skilled medical staff. Founded in 2007 by the visionaries of the Apollo Tyres Group, Artemis Hospital swiftly emerged as a leading healthcare hub in India. In 2013, it was the first hospital in Gurgaon to be accredited by the Joint Commission International. AMSL specializes in orthopedics, oncology, cardiovascular, neurosciences, and bariatric & minimally invasive Surgery. AMSL has also diversified its presence through Artemis Daffodil, Artemis Lite, Artemis Cardiac Care and Artemis Solace models.

An overview of Global Health Ltd. has been given above.

Key Performance Indicators (KPIs)

Benefits of Investing in Healthcare Stocks

Healthcare stocks can be a valuable addition to the portfolio due to the following benefits:

• High Growth Potential – The global population is aging, causing an increased demand for healthcare services and products. The rising prevalence of chronic diseases creates an opportunity for healthcare companies.
• Diversification – Healthcare stocks help the investor achieve portfolio diversification.
• Social Impact – Investing in healthcare can align with personal values of contributing to global health.
• Defensive Characteristics – Healthcare is considered a defensive sector as people need healthcare regardless of economic conditions.

Factors to Consider before investing in Healthcare stocks

Investors must consider the following factors before investing in healthcare stocks:

• Regulatory Environment – Changes in healthcare regulations can significantly impact the industry.
• Clinical Trials Results – Successful clinical trials can boost a company’s stock price, while failures can have a negative impact.

Future of the Healthcare Industry

The healthcare industry is experiencing a swift transformation driven by technological advancements and changing population demographics. Artificial Intelligence is revolutionizing drug discovery, medical imaging and patient diagnosis. Remote healthcare delivery is becoming increasingly common, thereby improving access to healthcare. Furthermore, there will be a focus on managing chronic conditions like diabetes and heart disease. Overall, the healthcare industry offers great opportunities for innovation and growth in the coming years.

Conclusion

To sum it up, we have explored several healthcare companies in India. These organizations have been crucial in shaping the Indian healthcare landscape. India’s healthcare sector has grown, with more private companies entering the market. Public-private partnerships have been very important in improving healthcare access and quality. Healthcare stocks can potentially deliver phenomenal returns in the future, and investors need to keep track of them. However, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs).