Top 5 Healthcare Stocks in 2024 : Market Cap & Industry Challenges

Introduction 

India has a healthcare system that is funded by a combination of public and private health insurance funds, as well as tax-funded public hospitals. Healthcare is an important part of our lives and the global economy. When healthcare improves, so does our quality of life. In this blog, we’ll explore why healthcare matters, discuss future trends, opportunities, and challenges in the industry, and highlight the advantages and risks of investing. Plus, we’ll present the top healthcare stocks to watch in 2024, all explained in simple terms.

 

Why Does the Healthcare Industry  Matter?

In 2018, India spent 3.2% of its money on healthcare compared to everything the country makes. Out of that, only 2% was from the government. In 2019, people paid for about 42% of their health costs from their own pockets, but the government and health insurance funds covered more, reaching 57%. In 2019, the government spent $36 billion on healthcare, which was 1.23% of all the money the country makes. In 2020–21, India planned to spend 1.8% of its money on health.

 

Now, why does healthcare matter? It's not just about doctors and medicine; it's a huge part of our lives and the world's economy. The interesting thing is, when healthcare gets better, our overall quality of life improves. That's why investors find it exciting—it's a promising area where improvements in health can lead to better lives for everyone.

 

Detailed Video

 

Future Trends and Opportunities in Healthcare

 

1. Fancy Tech: Imagine using your phone to talk to a doctor! Healthcare is getting more high-tech, making it easier for us to get medical help anytime, anywhere.

2. More Older People: As the world's population gets older, there's a bigger need for healthcare services. This means more opportunities for companies helping seniors stay healthy.

3. Personalised Medicine: This is like having a health plan made just for you. It's becoming a thing, and companies leading this charge could make big profits.

4. Global Health Issues: With everything going on in the world, there's a growing need for better healthcare solutions globally. This creates opportunities for companies that step up to the challenge.

 

 

Industry Challenges

1. Global Diseases like covid:  Global diseases, such as Covid, have brought about crises and panic that we've all seen recently. There's a high chance that the Covid-19 virus could come back at any time.

2. Money Matters: Healthcare can be expensive, and companies need to figure out how to keep costs down while still making money.

3. Competition is Tough: Many companies are competing to be the best in healthcare, so standing out is a challenge.

4. Rules and Regulations: Sometimes, making new medicines or devices has a lot of rules. Companies need to navigate these rules, and it can slow things down.

 

Advantages of Investing in Healthcare

1. Stays Strong: Even when the economy isn't doing great, people still need healthcare, so it's seen as a stable investment.

2. Innovation Pays Off: Companies that come up with new and cool medical stuff can make a lot of money when their ideas take off.

3. Global Reach: Some healthcare companies operate all around the world, which can be good for investors looking to diversify.

4. Steady Earnings: Some healthcare stocks pay out regular dividends, like a little bonus for investors.

Risks of Investing in Healthcare

1. Trials and Errors: Companies that spend a lot on research and development might face setbacks if their new treatments don't work out.

2. Patent Problems: When the patents protecting popular drugs expire, companies face more competition, affecting their profits.

3. What People Think Matters: If people start worrying about the safety of a drug or a healthcare company, it can hurt the stock.

4. Money and Markets: Global healthcare companies can be affected by changes in currency values and economic conditions in different countries.

 

 

Top 5 Healthcare Stocks By Market Cap (2024)

1.Apollo Hospitals (APHS)

Established in 1983 by Dr. Prathap C Reddy, Apollo Hospitals is India's first corporate hospital, credited with leading the private healthcare revolution. As Asia's top integrated healthcare services provider, Apollo spans hospitals, pharmacies, primary care, diagnostic clinics, and various retail health models across major cities like Chennai, Hyderabad, Kolkata, Bengaluru, and more. 

 

2.Max Healthcare (MAXH)

Established in 1996, Fortis Healthcare Limited (FHL) is a major healthcare service provider in India. With 36 facilities across India, Nepal, Dubai, and Sri Lanka and around 4,000 beds, FHL offers integrated services including hospitals, diagnostics, and day care specialties. They control their diagnostics business through SRL Limited, one of India's largest private diagnostics chains. FHL operates 27 hospitals with plans for a brand change, pending regulatory approvals. 

 

3.Fortis Healthcare (FHL)

Incorporated in 1996, Fortis Healthcare Limited (FHL) started operations in 2001 in Mohali, Punjab, and has grown into a prominent player with services spanning hospitals, diagnostics, and day care specialty facilities. Presently, Fortis operates in India, Nepal, Dubai, and Sri Lanka, managing 36 healthcare facilities with around 4,000 operational beds. The company runs 27 hospitals across various locations.

4.Global Health (GHL)

Global Health Limited is a leading private healthcare provider in North and East India, specialising in cardiology, neurosciences, oncology, and more. They currently operate 5 hospitals and have one under construction. With 2,467 beds across their operational hospitals and a team of 1,300+ doctors, they offer healthcare services in over 30 specialties. Additionally, Global Health runs 6 multi-specialty clinics at different locations. 

 

5.Narayana Hrudayalaya (NH)

Founded in 2000 by renowned cardiac surgeon Dr. Devi Shetty, Narayana Health, through its subsidiary Narayana Hrudayalaya Ltd, offers affordable healthcare across 47 facilities, including 20 hospitals. Boasting around 6,800 beds, they specialise in cardiac, renal, cancer, neurology, orthopaedics, and gastroenterology services. Their dedication to affordable healthcare positions them as a significant player in the industry.

Bonus- Best P/E ratio stocks

Rankings	Company	P/E Ratio
1.	Apollo Hospitals	117.87
2.	Max Healthcare	66.62
3.	Fortis Healthcare	62.15
4.	Global Health	62.44
5.	Narayana Hrudayalaya	33.04

 

Did You Know?

Did you know scientists are looking at using viruses that attack bacteria to treat infections, which could be a cool alternative to antibiotics in the future of healthcare.

 

Conclusion

In healthcare, the top 5 stocks for 2024, like Apollo Hospitals and Global Health, show promise. Despite challenges, such as global diseases, investing offers stability. Trends like personalized medicine and fancy tech shape the future.Investing in healthcare can be like discovering a treasure trove of opportunities. Remember to do your research, understand the cool things happening in healthcare, and consider both the good and tricky parts before making any investment decisions.

 

Disclaimer:

Please note that this blog is not any recommendation for buying or selling any stock. We always encourage the reader to do their research before investing in any stock.