The healthcare sector presents significant investment opportunities through notable listings like Apollo Hospitals Enterprise Ltd, Max Healthcare Institute Ltd, and Fortis Healthcare Ltd, offering exposure to India’s growing healthcare ecosystem.
Content:
- Overview of the Healthcare IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Healthcare Sector IPOs
- Disadvantages of Investing in Healthcare Sector IPOs
- Role of Healthcare Industry in the economy
- How to invest in Healthcare IPOs?
- Future outlook of Healthcare IPOs in India
- Healthcare IPOs in India – FAQ
Overview of the Healthcare IPOs in India
The healthcare sector features prominent listings including Apollo Hospitals Enterprise Ltd and Max Healthcare Institute Ltd, demonstrating robust potential in healthcare delivery and specialized medical services nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing healthcare awareness, medical infrastructure development, and expanding service accessibility across urban and rural segments.
IPO Fundamental Analysis
Apollo Hospitals Enterprise Ltd
Apollo Hospitals Enterprise Ltd recorded a robust financial performance in FY24, with significant growth in revenue and profitability. The company strengthened its financial position, supported by improved operational efficiency, showcasing its resilience in a competitive healthcare market.
Revenue Trend: Revenue rose to ₹19,059 crores in FY24, up from ₹16,613 crores in FY23, reflecting a growth of 14.72%. Expenses increased to ₹16,669 crores from ₹14,563 crores during the same period.
Equity and Liabilities: Equity capital remained constant at ₹71.90 crores in FY24. Reserves grew to ₹6,864 crores from ₹6,126 crores in FY23. Total liabilities increased to ₹16,753 crores from ₹14,428 crores.
Profitability: Operating profit climbed to ₹2,391 crores in FY24, compared to ₹2,050 crores in FY23. The operating profit margin (OPM) slightly improved to 12.47% from 12.27%, indicating stable operational efficiency.
Earnings per Share (EPS): EPS increased to ₹62.50 in FY24 from ₹56.97 in FY23, reflecting the company’s ability to deliver higher returns to its shareholders.
Return on Net Worth (RoNW): RoNW showed an improvement driven by a net profit of ₹935 crores in FY24, up from ₹844.30 crores in FY23, indicating sustained growth and profitability.
Financial Position: Total assets expanded to ₹16,753 crores in FY24 from ₹14,428 crores in FY23. Non-current assets rose to ₹11,473 crores, while current assets increased to ₹5,280 crores. Contingent liabilities grew to ₹789.90 crores.
Max Healthcare Institute Ltd
Max Healthcare Institute Ltd delivered a solid financial performance in FY24 compared to FY23, demonstrating growth in revenue, profitability, and assets. The company’s operational efficiency and strategic initiatives have bolstered its overall financial health across key metrics.
Revenue Trend: Revenue increased to ₹5,406 crores in FY24, an 18.48% rise from ₹4,563 crores in FY23. Operating expenses grew to ₹3,914 crores in FY24 compared to ₹3,322 crores in FY23.
Equity and Liabilities: Equity capital rose to ₹971.91 crores in FY24 from ₹970.92 crores in FY23. Reserves increased to ₹7,369 crores, while total liabilities climbed to ₹12,000 crores from ₹10,102 crores.
Profitability: Operating profit grew to ₹1,492 crores in FY24 compared to ₹1,241 crores in FY23. OPM improved slightly to 26.72% in FY24 from 26.38% in FY23, reflecting strong operational control.
Earnings per Share (EPS): EPS declined marginally to ₹10.88 in FY24 from ₹11.37 in FY23, despite a strong net profit of ₹1,058 crores compared to ₹1,104 crores in FY23.
Return on Net Worth (RoNW): With improved reserves and net profit, RoNW demonstrated stability in FY24, supported by steady profitability and capital structure enhancements over the previous fiscal year.
Financial Position: Total assets surged to ₹12,000 crores in FY24 from ₹10,102 crores in FY23. Non-current assets increased to ₹10,294 crores, while current assets decreased slightly to ₹1,706 crores. Contingent liabilities grew to ₹1,170 crores.
Fortis Healthcare Ltd
Fortis Healthcare Ltd delivered a steady financial performance in FY24, reflecting growth across key metrics such as revenue, profitability, and financial position. The company’s consistent operational efficiency highlights its commitment to enhancing shareholder value and maintaining strong financial stability compared to FY23.
Revenue Trend: Revenue grew to ₹6,893 crores in FY24 from ₹6,298 crores in FY23, marking a 9.45% increase. Expenses rose to ₹5,625 crores from ₹5,196 crores during the same period, showing controlled operational costs.
Equity and Liabilities: Equity capital remained constant at ₹754.96 crores in FY24. Reserves increased to ₹6,906 crores from ₹6,486 crores. Total liabilities grew to ₹13,289 crores from ₹12,434 crores in FY23.
Profitability: Operating profit rose to ₹1,268 crores in FY24 from ₹1,101 crores in FY23, with OPM improving to 18.29% from 17.32%, reflecting efficient cost management and operational scalability.
Earnings per Share (EPS): EPS improved slightly to ₹7.93 in FY24 from ₹7.80 in FY23, demonstrating consistent earnings and a positive outlook for shareholder returns.
Return on Net Worth (RoNW): Net profit increased to ₹645.22 crores in FY24 from ₹632.98 crores in FY23, showcasing strong returns on equity and improved financial health.
Financial Position: Total assets grew to ₹13,289 crores in FY24 from ₹12,434 crores in FY23, driven by non-current assets at ₹11,868 crores. Contingent liabilities increased slightly to ₹2,999 crores.
IPO Financial Analysis
Apollo Hospitals Enterprise Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 19,059 | 16,613 | 14,663 |
| Expenses | 16,669 | 14,563 | 12,478 |
| Operating Profit | 2,391 | 2,050 | 2,185 |
| OPM % | 12.47 | 12.27 | 14.82 |
| Other Income | 108.20 | 90.3 | 372.3 |
| EBITDA | 2,497 | 2,140 | 2,263 |
| Interest | 449.40 | 380.80 | 379 |
| Depreciation | ₹ 687 | ₹ 615 | ₹ 601 |
| Profit Before Tax | 1,363 | 1,144 | 1,578 |
| Tax % | 32.7 | 22.4 | 30.23 |
| Net Profit | 935 | 844.3 | 1,108 |
| EPS | 62.5 | 56.97 | 73.42 |
| Dividend Payout % | 25.6 | 26 | 16 |
Max Healthcare Institute Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 5,406 | 4,563 | 3,931 |
| Expenses | 3,914 | 3,322 | 2,989 |
| Operating Profit | 1,492 | 1,241 | 943 |
| OPM % | 26.72 | 26.38 | 23.22 |
| Other Income | 178.07 | 139.24 | 118.33 |
| EBITDA | 1,670 | 1,380 | 1,070 |
| Interest | 59.89 | 83.86 | 101 |
| Depreciation | ₹ 245 | ₹ 232 | ₹ 221 |
| Profit Before Tax | 1,365 | 1,064 | 739 |
| Tax % | 22.54 | -3.74 | 18.11 |
| Net Profit | 1,058 | 1,104 | 605 |
| EPS | 10.88 | 11.37 | 6.24 |
| Dividend Payout % | 13.79 | 0 | 0 |
Fortis Healthcare Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 6,893 | 6,298 | 5,718 |
| Expenses | 5,625 | 5,196 | 4,649 |
| Operating Profit | 1,268 | 1,101 | 1,069 |
| OPM % | 18.29 | 17.32 | 18.61 |
| Other Income | 54.27 | 135.33 | 342.37 |
| EBITDA | 1,306 | 1,163 | 1,096 |
| Interest | 130.95 | 129.09 | 147 |
| Depreciation | ₹ 343 | ₹ 316 | ₹ 301 |
| Profit Before Tax | 848 | 792 | 964 |
| Tax % | 25.07 | 22.82 | 20.53 |
| Net Profit | 645 | 633 | 790 |
| EPS | 7.93 | 7.8 | 7.35 |
| Dividend Payout % | 12.61 | 13 | 0 |
About the Company
Apollo Hospitals Enterprise Ltd
Apollo Hospitals Enterprise Ltd, founded in 1983 by Dr. Prathap C. Reddy, is India’s largest private healthcare provider. Headquartered in Chennai, it operates 71 owned and managed hospitals, offering a wide range of healthcare services and cutting-edge medical technologies.
The company provides pharmacies, diagnostic centers, telehealth clinics, and digital healthcare solutions. Renowned for clinical excellence and affordability, Apollo Hospitals leads the way in advancing healthcare in India through innovation, research, and academics.
Max Healthcare Institute Ltd
Max Healthcare Institute Ltd, established in 2001, is a leading healthcare organization in India with 22 facilities and over 5,000 beds. It operates across major regions, including NCR Delhi, Punjab, Haryana, Uttarakhand, and Maharashtra, delivering specialized care.
The company focuses on cancer care, cardiac sciences, orthopedics, and liver transplants. Additionally, it offers homecare services under Max@Home and diagnostic services via Max Labs, emphasizing comprehensive and patient-centered healthcare solutions.
Fortis Healthcare Ltd
Fortis Healthcare Ltd is one of India’s premier integrated healthcare providers, managing a network of hospitals, diagnostic centers, and specialty daycare facilities. It offers a range of services spanning primary to quaternary care with a focus on advanced medical technologies.
The company emphasizes patient-centric care with a team of expert professionals and state-of-the-art facilities. Fortis Healthcare continues to expand its reach, playing a vital role in India’s growing healthcare sector.
Advantages of Investing in Healthcare Sector IPOs
The main advantages of Investing in Healthcare Sector IPOs include exposure to India’s essential healthcare services, stable revenue streams, technological advancement opportunities, and strategic market positioning through established companies like Apollo Hospitals Enterprise Ltd.
1. Essential Services: The sector benefits from consistent healthcare demand, growing medical awareness, increasing insurance penetration, aging population needs, and expanding healthcare infrastructure requirements.
2. Revenue Stability: Diversified revenue streams through multiple specialties, diagnostic services, pharmacy operations, and preventive healthcare ensure consistent income generation.
3. Technology Integration: Advanced medical equipment, digital healthcare platforms, telemedicine capabilities, and diagnostic innovations enhance service quality and operational efficiency.
Disadvantages of Investing in Healthcare Sector IPOs
The main challenges of Investing in Healthcare Sector IPOs include regulatory compliance requirements, capital intensity, skilled personnel needs, and competitive pressures, as demonstrated in the performance metrics of companies like Max Healthcare Institute Ltd.
1. Regulatory Framework: Companies face strict healthcare regulations, quality standards compliance, accreditation requirements, medical protocols, and continuous monitoring from multiple regulatory authorities affecting operations.
2. Capital Requirements: Significant investments needed for medical infrastructure, advanced equipment, technology adoption, facility maintenance, and skilled healthcare professional recruitment impact financial planning.
3. Market Competition: Growing competition from established hospitals, specialty centers, and international healthcare providers requires continuous investment in infrastructure, technology, and service quality.
Role of Healthcare Industry in the economy
The healthcare sector drives economic advancement through extensive employment generation, medical infrastructure development, research promotion, and support to pharmaceutical and medical equipment industries nationwide.
The industry creates specialized employment opportunities, enhances medical capabilities, promotes health tourism, strengthens research infrastructure, and contributes significantly to public health improvement.
How to invest in Healthcare IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming healthcare sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of Healthcare IPOs in India
The healthcare sector demonstrates promising growth potential with increasing medical awareness, infrastructure development needs, technological advancements, and expanding healthcare accessibility requirements.
Industry modernization, specialty care development, and market expansion initiatives indicate positive prospects for future IPOs, supported by growing healthcare demands nationwide.
Healthcare IPOs in India – FAQ
Healthcare sector IPOs represent the first public offerings from companies providing comprehensive medical services, like Apollo Hospitals Enterprise Ltd and Max Healthcare Institute Ltd, enabling healthcare infrastructure expansion.
Major listings include Apollo Hospitals Enterprise Ltd, Max Healthcare Institute Ltd, and Fortis Healthcare Ltd, offering investors exposure to comprehensive healthcare delivery networks nationwide.
Healthcare sector IPOs provide strategic investment opportunities in India’s medical infrastructure growth, with companies like Apollo Hospitals Enterprise Ltd demonstrating sustainable expansion potential.
Apollo Hospitals Enterprise Ltd marks a significant milestone as the largest healthcare sector public offering, showcasing strong market acceptance and setting industry valuation benchmarks.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC documentation, analyzing healthcare market trends, studying company fundamentals, and maintaining adequate subscription funds.
Healthcare sector IPOs offer substantial growth potential through infrastructure expansion, technological advancement, increasing medical awareness, growing insurance penetration, and evolving healthcare needs nationwide.
Historical performance indicates strong profitability through stable revenue streams, operational efficiencies, specialty service development, technological integration, and strategic market positioning across segments.
Market observers anticipate new healthcare sector IPOs, following successful listings like Max Healthcare Institute Ltd, driven by growing medical infrastructure and service expansion demands.
Access comprehensive research through Alice Blue’s dedicated research portal, covering healthcare metrics, infrastructure analysis, market penetration strategies, technological innovations, and growth opportunities.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
