A majority of healthcare stocks rose on Tuesday amid an overall rebound on Dalal Street, after positive comments on drug makers and hospital chain operators from analysts. Healthcare stocks — including businesses such as pharmaceuticals, hospitals and diagnostic tests — are in focus amid resurgent Covid infections in the country.
CLSA initiated coverage on two new stocks in the space: Gland Pharma and Syngene.
CLSA finds valuations of all three stocks at reasonable levels. It expects the companies under its coverage to deliver consistent revenue growth of 15 -20 percent till the year ending March 2025.
According to Jefferies, hospitals have turned attractive after the recent correction, and they are expending their capacities by 26-86 percent over the next few years. Challenges have emerged in segments such as diagnostics and e-health, it said.
The brokerage has Fortis, Max and Apollo as its top ‘buy’ picks from the space.
It has brought down its EBITDA estimate for Apollo Hospitals and Fortis Healthcare by 11 percent and five percent respectively for the year ending March 2023. It has, however, raised its estimate for Max by two percent.
India’s Covid-19 tally worsened to 4.3 crore on Tuesday with 9,923 fresh cases, according to data from the Union health ministry data. The number of active cases increased to 79,313 and the number of deaths rose to 5,24,890 with 17 new fatalities, according to the data.
Total active cases in the country comprise 0.18 percent of total infections, and the national Covid-19 recovery rate stood at 98.61 percent, according to the ministry. CNBCTV18