With market sentiment swinging and the Nifty struggling to hold to record highs above 26,100, Jefferies has identified some sectors with potential opportunities. The international brokerage house has identified four companies in the hospital sector and recommended ‘Buy’ on the back of improving volumes, steady margins and capacity expansion that is beginning to influence forward estimates.
The brokerage added that Max Healthcare and Fortis remained its top picks, while Apollo Hospitals and Global Health (Medanta) continue to offer durable growth profiles heading into FY26.
Jefferies on Max Healthcare: ‘Buy’
Jefferies has maintained its Buy rating on Max Healthcare with a target price of Rs 1,400, implying 20% upside from current levels.
The brokerage said Max is entering an accelerated growth phase supported by a heavy brownfield expansion plan, including 1,300 new beds in FY26. It noted strong scale-up at recently acquired units and highlighted Max’s aggressive asset acquisition strategy as unmatched in the sector.
The September quarter showed solid volume momentum, with IPD up 22% and OPD up 27%. Jefferies also raised EBITDA estimates following the CGHS rate revision, which strengthens earnings visibility. Max remains one of Jefferies’ top picks.
Jefferies on Fortis Healthcare: ‘Buy’
Jefferies reiterated its Buy recommendation on Fortis with a target price of Rs 1,125, which signals 20% upside.
The report said Fortis delivered a clean beat in the September quarter, backed by strong occupancy trends and improving profitability in its diagnostics arm. Diagnostics margins are expected to rise to 26–27% by FY28, while hospital EBITDA continues to grow in the high-teens to 20% range.
Jefferies added that Fortis’ brownfield expansion pipeline gives high near-term visibility, and management commentary suggests additional upside to hospital margins.
Fortis is the brokerage’s other top pick in the sector.
Jefferies on Apollo Hospitals: ‘Buy’
Jefferies has kept its Buy rating on Apollo Hospitals with a target price of Rs 9,200, indicating 24% upside.
Apollo’s hospital division continues to deliver double-digit revenue growth, and ARPOB growth at 15% year-on-year remains the strongest among peers. Improved case mix across obstetrics, gynaecology and oncology supported this performance.
The brokerage said Apollo’s HealthCo business is emerging as a major value driver, with margins set to meaningfully improve from FY26. While some delays in near-term capacity additions are possible, Jefferies believes the long-term expansion pipeline remains intact.
Jefferies on Global Health (Medanta): ‘Buy’
Jefferies reaffirmed its Buy stance on Global Health (Medanta) with a target price of Rs 1,400, which implies 15% upside.
Despite a quarterly miss, Jefferies said Medanta delivered strong double-digit IPD and OPD volume growth, while its international patient share increased 100 basis points YoY, the highest improvement in its peer group.
The brokerage expects mid-teens revenue and EBITDA growth over FY25–FY28 as Medanta expands across Noida, Lucknow and Patna. It added that long-term demand visibility in the NCR region remains healthy.
However, Jefferies flagged near-term pressure on margins due to front-loaded clinician hiring and noted that a rising contribution from Tier II and PPP hospitals is softening ARPOB growth.