India’s listed hospital chains are entering a multi-year expansion phase backed by strong healthcare demand, higher insurance penetration and capacity additions, according to Antique. The brokerage house expects the healthcare delivery market to grow at a 10-12% CAGR to Rs 12 lakh crore over FY25-FY30, with private providers increasing their share of treatments to around 69% by FY30 from 64% in FY20.
Against this backdrop, Antique initiated coverage on Apollo Hospitals Enterprise, Global Health (Medanta), Healthcare Global Enterprises and Max Healthcare Institute, while reiterating coverage on Artemis Medicare Services. The brokerage assigned ‘Buy’ ratings to Apollo Hospitals, Global Health, Healthcare Global Enterprises and Artemis Medicare Services, while Max Healthcare received a ‘Hold’ rating.
Antique on hospital sector stocks: Long-term demand visibility
Antique said the 15 hospitals under its coverage expanded bed capacity by about 19,000 beds during FY23-26, taking the total to more than 70,000 beds. It expects these hospitals to add another 54% capacity by FY30, taking total beds beyond 1.08 lakh, with nearly 63% of the expansion coming through brownfield projects that offer faster ramp-up and higher returns on capital.
“We remain positive on the hospital sector, supported by a predominantly brownfield expansion pipeline enabling faster ramp-up and superior returns, strong long-term demand visibility, improving operational efficiencies and case-mix, and healthy balance sheets across leading operators,” Antique said.
Antique on Apollo Hospitals: ‘Buy’
Antique initiated coverage on Apollo Hospitals Enterprise Ltd. with a target price of Rs 9,790, implying an upside of about 14%.
The brokerage said Apollo operates 8,131 beds across its network and has built a diversified healthcare platform spanning hospitals, pharmacy distribution, digital health and diagnostics. It expects the company to add around 1,000 beds during FY26-28 through brownfield expansion and acquisitions.
Antique forecast revenue, EBITDA and PAT CAGR of 16%, 20% and 24%, respectively, over FY26-28. It also expects average revenue per patient to grow at a 6% CAGR while occupancy improves to more than 68% by FY28.
Antique on Global Health (Medanta): ‘Buy’
Antique also initiated coverage on Global Health Ltd. with a target price of Rs 1,520, implying an upside of about 15%.
The brokerage said Medanta operates six hospitals with 3,665 beds and plans to add around 490 beds through brownfield expansion in FY27. It expects the Noida facility to break even in the second half of FY27, while mature hospitals continue to improve profitability.
Antique projected revenue, EBITDA and PAT CAGR of 18%, 25% and 22%, respectively, over FY26-28. It also expects EBITDA margins to expand by 290 basis points to 24.6%, with EBITDA per bed rising at a 16% CAGR to Rs 65 lakh.
Antique on Healthcare Global Enterprises: ‘Buy’
Healthcare Global Enterprises Ltd. (HCG) is another stock Antique initiated coverage with a target price of Rs 840, implying an upside of about 37%.
The brokerage said HCG is India’s only listed pure-play oncology hospital network, operating more than 2,600 beds across 25 centres in 19 cities. It highlighted the company’s 1,000-bed expansion pipeline by FY30, comprising about 600 brownfield beds and 400 greenfield beds.
Antique expects revenue, EBITDA and PAT CAGR of 16%, 25% and 116%, respectively, over FY26-28. It said higher utilisation, better payor mix, brownfield expansion and operational improvements under KKR’s ownership should support earnings growth.
Antique on Max Healthcare: ‘Hold’
Antique initiated Max Healthcare Institute Ltd. with a target price of Rs 1,170, implying an upside of about 8%.
The brokerage said Max operates more than 6,100 beds across 21 healthcare facilities and plans to increase capacity by about 66% to around 10,200 beds by FY30. Nearly 88% of the expansion will come through brownfield projects and asset-light operations and management contracts.
Antique projected revenue, EBITDA and PAT CAGR of 19%, 21% and 19%, respectively, over FY26-28. Despite the healthy growth outlook, the brokerage maintained a ‘Hold’ rating after the stock’s strong run-up.
Antique on Artemis Medicare Services: ‘Buy’
Antique reiterated Artemis Medicare Services with a target price of Rs 340, implying an upside of about 29%.
The brokerage said Artemis plans to increase bed capacity to around 2,200 from 700 currently by adding 1,450 beds across Gurugram, Raipur and South Delhi over the next three to four years.
Antique expects revenue, EBITDA and PAT to grow at a CAGR of 27%, 34% and 36%, respectively, over FY26-28. It also expects EBITDA margins to expand by 190 basis points to 19.3% as operating leverage improves with the larger network.
Sector outlook remains positive
Antique said concerns around hospital overcapacity are overstated despite aggressive expansion plans. The brokerage expects demand to remain healthy, supported by rising insurance penetration, Ayushman Bharat and PM-JAY, growing medical tourism, a higher incidence of chronic diseases and continued market share gains by organised hospital chains.
It also highlighted revised building height norms, the Competition Commission of India’s order on integrated healthcare delivery models and revised CGHS tariffs as supportive policy developments for the sector.
Conclusion
Antique expects India’s organised hospital sector to remain on a strong growth path as capacity expansion, improving occupancy, favourable case mix and healthy balance sheets support earnings over the next few years. Within the space, the brokerage prefers Apollo Hospitals, Global Health, Healthcare Global Enterprises and Artemis Medicare Services with ‘Buy’ ratings, while maintaining a ‘Hold’ on Max Healthcare because of valuation despite its strong operating outlook.
Disclaimer: The institutional equity research ratings, target prices, and financial growth metrics (Revenue, EBITDA, and PAT CAGRs) outlined in this summary of Antique’s report are strictly for informational and educational purposes. They do not constitute an offer, solicitation, or recommendation to purchase or sell any equity shares or financial instruments. Investments in the healthcare delivery and hospital sector are subject to execution risks on bed rollouts, clinical talent attrition, domestic regulation on procedure pricing, and broader equity market volatility. Readers must conduct independent analysis and consult a SEBI-registered investment advisor before deploying capital.
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