Health care, or healthcare, is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health professionals and allied health fields. Medicine, dentistry, pharmacy, midwifery, nursing, optometry, audiology, psychology, occupational therapy, physical therapy, athletic training, and other health professions all constitute health care. The term includes work done in providing primary care, secondary care, tertiary care, and public health.
Access to healthcare may vary across countries, communities, and individuals, influenced by social and economic conditions and health policies. Providing health care services means “the timely use of personal health services to achieve the best possible health outcomes”. Factors to consider in terms of healthcare access include financial limitations (such as insurance coverage), geographical and logistical barriers (such as additional transportation costs and the ability to take paid time off work to use such services), sociocultural expectations, and personal limitations (lack of ability to communicate with health care providers, poor health literacy, low income). Limitations to health care services affect negatively the use of medical services, the efficacy of treatments, and overall outcome (well-being, mortality rates).
From routine check-ups to life-saving treatments, the healthcare industry plays a vital role in ensuring our well-being. With the rising incidence of lifestyle diseases and the escalating costs of healthcare, there is a growing demand for accessible and affordable medical services. Moreover, the increasing penetration of health insurance and government initiatives like e-health is further propelling the growth of the healthcare market.
What are Healthcare Sector Stocks? :-
Healthcare stocks include companies in the medical sector such as hospital management, pharmaceuticals, biotechnology, and medical products manufacturing. These firms are integral to healthcare delivery, and investing in these stocks supports companies focused on improving health outcomes.
Healthcare stocks provide investment opportunities in shares of companies operating in the healthcare sector, which includes pharmaceuticals, biotechnology, medical devices, hospitals, healthcare services, and health insurance.
Healthcare stocks are shares of companies that develop medicines, make medical equipment, or offer healthcare services and insurance. It’s a profitable sector, and many investors are interested in it. Just like other stock market sectors, healthcare has several industries with their own specific details. In healthcare, some of the key subcategories of stocks are drug stocks, medical devices stocks, health insurance stocks, and medical service provider stocks.
Healthcare stocks are also affected by the overall performance of the stock market. As with any investments, investors should do their research before investing in healthcare sector stocks to ensure they understand the risk and can make informed decisions. Additionally, it’s important to stay up-to-date on news related to the sector and know when changes occur that may affect a particular stock. By doing so, investors can remain well-informed and maximize their return on investment.
Moreover, in the healthcare sector, investors have to watch out for new developments and trends because it is a rapidly changing market. From developments in gene therapy to more modern forms of medical care, the healthcare industry is always growing and evolving. This makes researching the best stocks in this sector particularly important as they need to be aware of all the shifts in the market.
Best Healthcare Stocks :-
- Fortis Healthcare
With around 28 healthcare facilities, over 400 diagnostics centres and more than 4,500 operational beds, Fortis Healthcare is one of India’s renowned integrated healthcare service providers.
Additionally, it owns and operates multiple multi-speciality hospitals and super-speciality centres across India. In India, Fortis Healthcare operates in Karnataka, Delhi, West Bengal, Punjab, Haryana, Rajasthan, Uttar Pradesh, and Maharashtra. The company also operates in various countries like Sri Lanka and the United Arab Emirates.
It provides a wide range of services, from clinics to quaternary care facilities and ancillary services. The company’s specialities include dental sciences, cosmetology, radiology, neurosurgery, orthopaedics, pulmonology, cardiac sciences, renal sciences, organ transplant and more.
- Global Health Limited
Global Health Limited (GHL), also known as Medanta, is an Indian company that offers specialised healthcare services across the North and East regions of India.
Medanta operates 5 hospitals and 6 Mediclinic facilities in cities like Delhi, Gurugram, Indore, Ranchi, Patna and Lucknow. Newsweek also featured this company in the list of top 250 global hospitals in 2023.
In addition to medical treatments, Medanta offers convenient services like medicine delivery, lab tests, diagnostics and homecare bookings. The company delivers high-quality healthcare services to patients through its network of facilities and telemedicine channels.
Medanta provides a wide range of treatments for various medical conditions, including cancer, prostate cancer, coronary artery disease, Parkinson’s disease, kidney disease, epilepsy, stroke, sepsis, liver issues, fractures, vision problems, arthritis, asthma and more. The company specialises in fields such as cardiac surgery, nephrology, urology, dermatology, ophthalmology, radiology, dental care and interventional cardiology.
- Apollo Hospitals Enterprise
Incorporated in 1983, Apollo Hospitals Enterprise is a healthcare company providing a wide range of hospital, pharma and wellness products and services to customers.
On the other hand, the retail health and diagnostics segment encompasses clinics and diagnostic services. Apollo Hospitals Enterprise comprises 10,000+ beds, 5,000+ pharmacies, 1,500+ diagnostics centres, 378+ primary care clinics, 15+ medical education centres and 200 telemedicine centres. Furthermore, Apollo Hospitals operates medical facilities in Bangladesh, Mauritius and the UK.
The company is divided into several segments, including healthcare services, digital health and pharmacy distribution, retail health and diagnostics and others. Its healthcare services segment focuses on hospitals and hospital-based services. The digital health and pharmacy distribution segment is involved in procuring and distributing fast-moving consumer goods, pharmaceuticals and private-label products through digital platforms.
- KIMS
Krishna Institute of Medical Sciences Limited primarily provides medical and healthcare services. Its departments cover a range of specialities, including accident care, andrology, Alzheimer’s treatment, paediatric renal care, gastrointestinal oncology, general surgery, paediatric oncology, paediatric surgery, female urology, fertility treatments, heart wellness and more.
Its institutes cater to specialised areas, including dental sciences, cardiac sciences, neurosciences, heart and lung transplantation, and gastroenterology and hepatology. Operating under the brand ‘KIMS Hospitals’, the institute manages 12 multi-specialty hospitals with a total capacity exceeding 4,000 beds. It has more than 25 specialities and superspecialities.
- Aster DM Healthcare
The clinics segment comprises clinics with in-house pharmacies, while the retail pharmacies segment includes standalone retail pharmacies and optical outlets. The other segment offers healthcare consultancy services.
Aster DM Healthcare Limited is a healthcare provider with various segments, including hospitals, clinics, retail pharmacies and others. In the hospitals segment, the company operates hospitals along with in-house pharmacies.
Geographically, the company operates in the Gulf Cooperation Council (GCC) States, which include the United Arab Emirates, Qatar, Oman, Saudi Arabia, Jordan, Kuwait, Bahrain, as well as India. Aster DM Healthcare offers healthcare services under brands like Aster, Medcare and Access. The company runs a network of over 34 hospitals, 131 clinics, and 502 pharmacies (including 255 pharmacies in India operated by Alfaone Retail Pharmacies Private Limited under licence from Aster). Furthermore, it has 1 reference lab, 235 Patient Experience Centers (PEC) and 15 satellite labs in India.
- Adeshwar Meditex
The Company was incorporated as ‘Adeshwar Meditex Private Limited’ on April 02, 2007. Further, the Company was converted to Public Limited on March 09, 2021 and name of the Company was changed to ‘Adeshwar Meditex Limited’.
These products are affordable by everyone and enjoy high adoption in medical institutions, clinics and end consumers. The wound care market in India is still in its growth phase and is quite a fragmented one characterized by the presence of several manufacturers and fierce competition existing between them. Johnson and Johnson emerged as the market leader in this space, in terms of revenue. Smith and Nephew and Datt Medi products were the next two leading companies. These companies had strong product portfolio along with strong distribution systems and promotion strategies that enabled them to keep hold of their market share
The drivers for wound dressings market include growing awareness in patients for personal hygiene and growth of disposable income in population. In addition, medical advances in the wound dressing applications contribute significantly to the market growth during the forecast period. In addition, the market growth is highly stimulated due to enhancement in medical technology, availability of medical workforce and rise in personal care. Product segment for wound dressings market includes traditional and advanced. Advanced segment includes moist, antimicrobial and interactive. Advanced product segment accounts for a significant share in the global market owing to significant usage and enhanced utility of products advanced.
- Artemis Medicare
Artemis Health Institute is a healthcare venture launched by the Promoters of the Apollo Tyres Group. Since incorporated in 18 May 2004, the Group is engaged in the business of managing and operating of multi specialty hospitals and commenced its commercial operation by setting up Artemis Hospital (formerly Artemis Health Institute) at Gurugram on 16 July 2007.
This unwavering focus on clinical excellence enables Artemis Hospitals to continuously assess the quality of care provided to patients and allows to objectively measure the consistency and success of healthcare delivery services. In addition to the focus on clinical excellence, the Hospital ensures that medical professionals and other staff are periodically trained on the newest techniques and procedures in the medical field on a periodic and continuous basis.
Artemis Hospital received accreditation from the Joint Commission International, USA (JCI) for meeting international healthcare quality standards for patient care and management. The Hospital in Gurugram was accredited with JCI and NABH (National Accreditation Board for Hospitals) within 3 years of start up. The hospital also received Green OT certification from Bureau Veritas.
- Aspira Pathlab & Diagnostics
Aspira Pathlab & Diagnostics Limited is a public limited company incorporated in July 03rd, 1973. The Company is engaged into the business of running, owning, managing and administering Diagnostics Centers. Its principal activities consist of pathology investigation services, radiology investigation services and other related healthcare services at Diagnostic Centres in Mumbai. During the year, the Company commenced its business activities of diagnostic center & pathology from November 2016 onwards by acquiring running business activities of ‘Ankur Pathology Laboratory.
The allotment was made on 19th November 2016 & listing & trading approval is awaited. The paid-up capital as on 31st March 2017 was 5193000 equity shares of Rs. 10/- each. The Company has changed its object clause on 10th August 2016; its present name was changed on 16th November 2016 & registered office of the company was shifted from State of West Bengal to State of Maharashtra, vide order dated 18th November, 2016 & company again shifted its registered office within the city limit of Mumbai on 17th March, 2017.
the Company applied to BSE Limited on 27th July 2017 under Direct Listing norms of BSE Limited for listing & trading of its securities at BSE Limited. During the year 2018-19, issued, subscribed and paid- up capital of the of the Company has increased from 5,19,30,000 to Rs. 13,69,30,000/- divided into 81,93,000 Equity Shares of Rs. 10/- each and 55,00,000 9% Non-Cumulative, Non-convertible, Non-Participating Redeemable Preference Shares of Rs. 10/- each. The Company got delisting approval from Metropolitan Stock Exchange of India Limited and Calcutta Stock Exchange Limited w.e.f. April 12th, 2018 and October 15th , 2018 respectively.
Benefits of Investing in Healthcare Stocks :-
Investing in healthcare stocks can provide investors with a variety of benefits.
- Potential for Access to New Technologies
The healthcare sector is constantly evolving and new technologies are being developed all the time. Investing in these stocks gives investors access to these technological advances early on, allowing them to benefit from the potential for higher earnings.
- Potential for Global Growth
Finally, investing in healthcare stocks can give investors exposure to global markets. Many of the companies involved in this sector are multinationals with operations around the world. This gives investors access to potential new growth opportunities and increased earnings potential.
- Diversification of Portfolio
Healthcare sector stocks can also be used to diversify one’s portfolio, helping investors hedge against market volatility and ensure they have a balanced approach when it comes to investing. By diversifying across sectors, investors are better able to manage risk and create a well-rounded investment strategy that has the potential for higher returns over time.
- Tax Advantages
Investing in healthcare stocks can also offer tax advantages as certain investments may qualify for a capital gains tax break or other deductions. Doing so may help reduce an investor’s overall tax bill and maximize their returns.
- Long-term growth potential
One of the primary benefits of investing in the healthcare sector is its long-term growth potential. Unlike other sectors that may be prone to short-term fluctuations, the healthcare industry tends to offer steady returns over time due to its dependable nature. Additionally, many companies offer dividend payouts which can further add to an investor’s return on investment and help make up for market volatility.
- Consistent Demand
he demand for healthcare stocks is consistent and is not influenced by economic conditions. Thus, the healthcare sector is less volatile compared to others.
- Innovations and profits
With increasing demand for healthcare services, healthcare companies are constantly developing new drugs, treatments, and medical devices to meet the needs of their patients and provide the best medical services. This can lead to significant profits for investors if these innovations are successful.
- Growth opportunities
The healthcare sector is expanding especially after the Covid pandemic. With the growing population ages and the prevailing chronic diseases, this sector can provide long-term growth opportunities for investors.
How To Invest in Healthcare Sector Stocks? :-
Investing in healthcare stocks Simply follow these steps.
- 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
Factors to Consider Before Investing in Healthcare Stocks in India :-
When considering investment inhealthcare industry stocks, it is important to consider a few key factors that can affect their prices:
- Industry Trends
Stay updated on the latest trends in healthcare. Advances in technology, shifts in consumer preferences, and new treatments can all shake up stock values. Furthermore, keeping tabs on industry news helps you make smart investment choices.
- Geopolitical Events
Pay attention to events like trade wars or economic sanctions. These events can mess with the supply chains of hospital products, making it hard for companies to meet the demand for their products or services. That can drive down stock prices.
- Digital Technology
There has been a rapid adoption of digital technology in the healthcare market like e-pharmacy, online consultations, telemedicine, health apps and more. You must ensure the company in which you are investing provides such services.
- Pandemic stability
Assess the stability of healthcare companies in the face of pandemics and global health crises. Companies with adaptable business models, diversified offerings, and crisis management strategies demonstrate long-term stability.
- Competition from New Players
The entry of new players in the healthcare market can disrupt the existing competitive landscape. Increased competition may lead to reduced earnings and lower stock prices for established companies.
- Regulatory Impact
Changes in healthcare regulations, such as drug pricing policies, insurance coverage rules, and tax laws related to medical research, can significantly impact the profitability and stock valuations of healthcare companies.