Apollo Hospitals, Fortis Healthcare, Max, Medanta share prices decline up to 13.5% in a month. Buy, Sell or Hold ?

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Fortis Healthcare , Max Healthcare Institute, Healthcare Global (Medanta) , Apollo Hospitals Enterprise ltd share price have declined up to 13.5% in last one month. The Supreme court directive to homogenize prices across hospitals has led to increased concerns on the regulatory risks.

While the Supreme court of India has directed the Health department to present a concrete proposal regarding the rates chargeable from patients before the next hearing (six weeks from 27th February), analysts at Motilal Oswal Financial Services, said that considering the substantial investments made by hospitals in building infrastructure and acquiring talent resources, imposing a ceiling on prices aligned with Central government healthcare Scheme (CGHS) rates could potentially undermine the investment ecosystem within the healthcare services sector. Therefore though the overhang may persist nevertheless most analysts do not expect major pricing caps introduced across the board.

Also Read-15 multibagger small-cap stocks tumbled between 15% and 30% from 52-week highs; check full list Analysts at HSBC Securities and Capital Markets (India) Private Limited said that in view of challenges for implementation, this appears more like a near-term headline risk though it can’t be dismissed. While these regulatory clouds may take some time to settle, HSBC analysts remain positive on the growth outlook for the hospitals sector and like Apollo Hospitals among covered hospital names.