2023 in Review: Hospital stocks see stellar gains, Medanta, Max, Narayana, fortis, Apollo amongst top performers
Apollo Hospitals Enterprise Fortis Healthcare Max healthcare Institute Narayana Hrudayalaya have seen handsome gains of 27-58% during 2023. Global Health (Medanta) has seen its share price more than double. The stellar gains for the hospital stocks have been driven by improving earnings outlook.
As the rising non covid revenues helped, the improved occupancy, higher in patients and indoor procedures, rising insurance penetration, rebound in medical tourism and expansions being undertaken by hospitals to cater to strong rise in demand are some of the key earning drivers. While the September-December quarter remains seasonally weak due to festivals and holiday season, The hospitals had seen strong first half performance which had been aided by better-than-expected improvement in operational parameters such as ARPOB (average revenues per operating bed) and occupancy. The September quarter also benefitted from seasonality factors.
During the September quarter hospitals as Apollo, Max Healthcare, Medanta sales, Ebitda and net profit grew 16%, 18% and 24% yea-on-year on an aggregate basis respectively as per Motilal Oswal Financial Services , outperforming their estimates by 5%,11% and 8% respectively. Also Read- 2023 in Review: 17 important lessons investors should learn from this year Even analysts at Jefferies India Pvt Ltd said that the quarter saw healthy ARPOB as well as volume growth. Hospital divisions for all hospitals in Jefferies coverage universe clocked double-digit sales and Ebitda growth.
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