May 21, 2024

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Fortis Vs Apollo – Which hospital is Doing Better in Share Market?

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The Healthcare Landscape in India

The healthcare industry in India is one of the leading areas contributing to the GDP and economic growth of the country. During and post the Covid19 period, the healthcare industry has taken a centre stage in achieving economic growth factors and providing a backbone for the economy to rise through the losses. As human lives and industries incurred a huge price due to the pandemic, the healthcare industry across the globe stood strong fighting against the odds and providing support in all possible means.The Indian healthcare industry is no exception. The Indian Government has also taken significant steps to drive growth in this sector introducing multiple schemes like Ayushman Bharat, Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), initiatives like ‘Heal in India’ to offer holistic healthcare services for foreign nationals, and many more. We will talk about two distinguished Indian private players in the healthcare domain who contributed towards securing lives and stabilizing the Indian economyin the post-Covid era.

Fortis Healthcare Ltd

At the current date,Fortis share price is INR 253.80, and is recommended to “Buy” with a short-term perspective by top stock market analysts.

Fortis first started its healthcare operations in Mohali. The company later acquired Escorts group to extend the chain of hospitals across the country. Currently,Fortis Hospitals runs 36 hospitals across the country. They acquired SRL Diagnostics to venture into the pharmacy chain and have 400+ diagnostic centers across the country.

FHL’s annual revenue for FY 2022 was INR 5718 crore. However, Fortis has improved its gross profit margin over the years, especially during the covid era, as compared toApollo Hospitals. In 2022 Fortis Hospital’s gross profit margin stood at 19.17 in comparison withthe 15.43 of Apollo Hospital.

As a seasoned investor or an equity researcher, one of the most important factors is the PE ratio. Thus, for your consideration, the PE ratio for Apollo is 72.5, and for Fortis,it is 31.8.

Apollo Hospitals Enterprise Ltd

If you are an investor interested in gaining long-term profits from the healthcare industry, you must consider Apollo Hospitals share Price of INR 4,274.00 to bet on.

On top of that, AHEL also pays a dividend to its shareholders. Annual revenue for Apollo Healthcare Enterprise Ltd for FY2022 was INR 14,663 crore.

Apollo Hospitals has a larger chain of operations as compared with Fortis Healthcare.

Apollo is a household name in India with its wide network of multispeciality hospitals, retail pharmacy chains (Apollo Pharmacy), diagnostic centers, medical insurance, pharmacy, medical tests app (Apollo 24/7), and many more. AHEL was established in the year 1983 as a corporate healthcare provider in Chennai. In 2007, Apollo Hospitals got into a JV with Apollo DKV Insurance Co. and rebranded the newly formed company as Apollo Munich Health Insurance.

Currently, Apollo Hospitals own 11,000 beds across all 10 hospitals in the country. 5000 pharmacies offering pharma and wellness products, 400+ clinics across the country.

Future Prospects

Apollo, being the prominent player in the healthcare domain is investing in building an AI/analytics-based personalised HMS whereasFortis is spending on providing a better patient experience through an integrated platform across all hospitals. Thus, based on the information provided, choose wisely based on the inputs provided, and don’t forget to solicit the opinion of your advisor to make the best decision optimizing your returns.