The business of hospitals will continue to flourish, brokerage told 4 names, said- If you want to make goods, pick up share

New Delhi. It is not at all pleasant to write that the business of hospitals will flourish. Because there is also a meaning to say that more people will continue to get sick. More old people will reach the hospital and bad lifestyle will make people sick. In such a situation, the functioning of hospitals will increase and earning. It is estimated by a legendary global brokerage firm. This brokerage has also mentioned the names of 4 hospital chains and has called himself a bullish on them. A lot of profit can be made by putting money in their shares.

The brokerage firm is named HSBC. This firm has given its opinion on four major hospitals in its note. According to this, there may be a year of big expansion for 2025 hospitals. However, despite the increase in revenue, the Ebitda margin may remain under pressure. It has recommended purchases on shares of four hospitals. The firm has fixed the target price of Apollo Hospitals at Rs 8,220, which shows a potential increase of 20 per cent from the closing price of 28 November. At the same time, the target price of Krishna Institute of Medical Sciences (KIMS) has been fixed at Rs 670, which is 16 percent more than tomorrow’s closing.

Why does the brokerage think this?

HSBC has given priority to Apollo and Kims shares in its report. According to the report, there are strong indications of structural development due to the number of elderly people in the hospital area, increase in lifestyle diseases and increasing scope of health insurance coverage.

Brokerage says that there will be a huge increase in the number of beds, but despite this it cannot be said that supply is excessive than necessary. Even in small markets of cities, the demand for beds will remain and it will be difficult to fulfill it. Brokerage is giving priority to hospitals that are increasing capacity without impacting their margin, and improve their occupancy rate, average revenue per bed.

About 5 thousand beds will be added every year!

HSBC has placed a positive view for Apollo 24/7 (Apollo’s Digital Health Platform). Even if Quick-commerce companies step into the pharmacy online, it will not have a big impact on Apollo, as it is already providing medicines online.

The brokerage firm has said in its note that the 7 major hospitals that they have covered will put 16,000 new beds in the next 3-5 years. This number is four times more than 4,000 beds added to FY19-24. Also, this figure is expected to reach 24,000 by combining other private hospitals.

Understand challenges before investing money

HSBC has said that the cost of increasing new beds can affect the Ebitda margin. In FY25-27, hospitals are estimated to increase by 12-24 per cent, but the Ebitda margin may also decline by 0-2 per cent.

(Disclaimer: Stocks mentioned here are based on the advice of brokerage houses. If you want to invest in any of these, consult the first certified Investment Advisor.