New Delhi: HSBC has initiated coverage on Apollo Hospitals with "overweight" and Fortis Healthcare with "neutral" rating.
India is substantially under-invested in healthcare with 17 per cent of the world's population but only 6 per cent of the beds, the HSBC report says.
"Meager public healthcare spending in India presents a big investment opportunity for private players," it says.
The report says strong growth in hospital business, increasing contribution from pharmacy and adequate funding for expansion, bodes well for Apollo Hospitals.
However, HSBC sees near-term earnings for Fortis remaining under pressure given its high interest burden after overseas expansion. While its growth in India is strong, HSBC sees stress in its international prospects
Shares in Apollo Hospital were up 0.2 per cent, while Fortis was down 1.6 per cent.
Copyright Thomson Reuters 2012
India is substantially under-invested in healthcare with 17 per cent of the world's population but only 6 per cent of the beds, the HSBC report says.
"Meager public healthcare spending in India presents a big investment opportunity for private players," it says.
The report says strong growth in hospital business, increasing contribution from pharmacy and adequate funding for expansion, bodes well for Apollo Hospitals.
However, HSBC sees near-term earnings for Fortis remaining under pressure given its high interest burden after overseas expansion. While its growth in India is strong, HSBC sees stress in its international prospects
Shares in Apollo Hospital were up 0.2 per cent, while Fortis was down 1.6 per cent.
Copyright Thomson Reuters 2012
