Top 5 Healthcare sector shares in India | Hospital shares in India | Groww Originals - YouTube

Hello, I Jagdeep Singh welcome you.

As you know due to the second wave of Covid, many people are getting impacted

So we thought of telling you all about the top healthcare companies operating in India.

For which we called a special guest, CA Dipika Rathe who will tell us about them

Let us start today's video

As we know that the second wave of Covid is spreading like wildfire

And we thought of discussing some companies which will be the most important in this phase

Pharma companies have already been in the news, so we thought why not discuss some healthcare companies

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We will start with an overview of the healthcare industry which is divided into the public and private sector

Public sector is the one that comes under the government regulations where basic services are provided

but if you have to get special treatment or equipment, then the private sector is preferred

Healthcare in India costs less than other countries like the US, and Western European

For example, the cost of surgery in India is 1/10th of the cost in US or Western European countries

meaning the medical treatment in India is very low

Because of which India's medical market is growing at a rate of 18% per annum

Meaning many people travel to India for medical treatment

and is forecasted that the industry will increase to 8.6 trillion in FY22 from 4 trillion in FY17 with a CAGR of 16-17%

If we see the impact of Covid 19 on the healthcare systems, it has shaken up the systems of developed countries

And we see it in India, the public and private sector have worked together to deal with Covid

In fact, the private sector is in full support of the government helping out with extra isolation beds, quarantine facilities etc

Factors that encourage us to invest in this sector are the medical infrastructure in Tier 2 and 3 cities

Covid has made us realise that the medical infrastructure in tier 2 and 3 cities is not strong

with the shortfall of beds, equipment due to which many hospital chains are focusing on tier2 and 3 cities

nd are trying to expand in collaboration with the local doctors

If we see Medical tourism, the treatment in India is provided at a lower rate

And many people from countries like Bangladesh, Maldives, Afganistan, and Iraq travel to India for their medical treatment

Let us now start the discussion on the top 5 healthcare companies, but I am not recommending

and shares and it is for educational purposes only

The first company in terms of market cap is Apollo Hospitals

They had started out as a 150-bed hospital and today they operate 9200 beds across 64 hospitals

The daily average revenue per occupied bed is 38065 and a hospital occupancy of 38%

The major revenue comes from healthcare services of about 51%, followed by retail pharmacy of 43%

and is generated from South Indian states which give around 70% revenue and the rest others 30%

Let us now look at their financial ratios

Its PE ratio is high at 222.60, one year return is around 144.73%, the NPM is only 2.7%

The second company is Dr. Lal PathLabs which is a leader in diagnostic services

Their business model is divided into 2 parts, provide services to walk-in patients and the other is B2B

Hospitals refer their patients to Dr. Pathlabs for tests and hence their business caters to hospitals too

Their presence is the most in North India, expanding in East and South

Their 100% revenue is generated from diagnostic services. Their revenue has compounded 15% in the last 5 years

The NPM is around 17%, the debt-equity ratio is 0, and the current ratio is 4.11

and their one-year return is 112.

The next company is Max Hospitals with 16 hospitals and a bed capacity of 3200

And they provide a range of services like eye care, dental care, dermatology, lung transplant etc

Their daily revenue per occupied bed is 51200 which is very high

They arranged 1200 beds for covid patients and conducted 3.17 lakh RT-PCR tests and treated 21000 patients

Their PE ratio is 265.5, the debt-equity ratio is 0.42, and the current ratio is 0.49 which indicates that the company faces problem to meet the liability needs

The NPM is 5.07%

The next company is Fortis Healthcare who has super-specialty and multi-speciality hospitals

They offer a wide variety of services like liver-kidney transplant to cardiac treatment, mother-child care, orthopedics etc

Their bed capacity today is 3700. The average daily revenue per occupied bed is Rs 43,287.67 with an occupancy rate of 67%

Around 79% of revenue comes from healthcare services and 21% from diagnostics

Their maximum revenue is generated from North and South India

Their PE ratio is 291.41, NPM is 2%, the debt-equity ratio is 0.24, the current ratio is 0.37

and their one-year return is 63.55%

The last company is Metropolis Healthcare, they generate 100% revenue from diagnostic services

They cater to walk-in patients where they generate 56% revenue and 44% from B2B

Their diagnostic centres are available in India, South Asia, Africa,and the Middle East

with 1500 collection centres and 125 laboratories

Their ROE is 30.55%, NPM is 16.83%, the debt-equity ratio is 0.1, the current ratio is 2.65%

Its one-year return is 82.46%