Content:
- Company Overview of Apollo Hospitals
- Company Overview of Fortis Healthcare
- The Stock Performance of Apollo Hospitals
- The Stock Performance of Fortis Healthcare
- Fundamental Analysis of Apollo Hospitals
- Fundamental Analysis of Fortis Healthcare
- Financial Comparison of Apollo Hospitals and Fortis Healthcare
- Dividend of Apollo Hospitals and Fortis Healthcare
- Advantages and Disadvantages of Investing in Apollo Hospitals
- Advantages and Disadvantages of Investing in Fortis Healthcare
- How to Invest in Apollo Hospitals and Fortis Healthcare Stocks?
- Apollo Hospitals vs. Fortis Healthcare – Conclusion
- Healthcare Sector Stocks – Apollo Hospitals vs. Fortis Healthcare – FAQ
Company Overview of Apollo Hospitals
Apollo Hospitals Enterprise Limited, an India-based integrated healthcare firm, operates private hospitals, clinics, diagnostic centres and pharmacies, in addition to providing pharmaceutical and wellness products.
The company’s operations are divided into Healthcare Services, Retail Health and Diagnostics, Digital Health and Pharmacy Distribution and Other segments. With approximately 10,000 beds in 71 hospitals, 6000 pharmacies, 200 clinics and diagnostic centres, as well as 150 telemedicine centres, Apollo Hospitals specializes in a wide range of healthcare services.
Company Overview of Fortis Healthcare
Fortis Healthcare Limited, an India-based healthcare provider, offers integrated healthcare services with a focus on specialities such as cardiac sciences, cosmetology, dental sciences and more. The company manages a network of multi-speciality hospitals and diagnostics centres, with approximately 27 facilities and over 4000 operational beds.
Operating in India, the United Arab Emirates and Sri Lanka, its subsidiaries include entities like Escorts Heart Institute and Research Centre Limited.
The Stock Performance of Apollo Hospitals
The table below displays the month-by-month stock performance of Apollo Hospitals Enterprise Ltd for the past year.
| Month | Return (%) |
| Jan-2024 | 10.66 |
| Feb-2024 | -2.99 |
| Mar-2024 | 4.18 |
| Apr-2024 | -7.09 |
| May-2024 | -1.81 |
| Jun-2024 | 3.33 |
| Jul-2024 | 7.04 |
| Aug-2024 | 4.72 |
| Sep-2024 | 3.01 |
| Oct-2024 | -2.48 |
| Nov-2024 | -2.76 |
| Dec-2024 | 6.39 |
The Stock Performance of Fortis Healthcare
The table below displays the month-by-month stock performance of Fortis Healthcare Ltd for the past year.
| Month | Return (%) |
| Jan-2024 | 1.7 |
| Feb-2024 | -6.21 |
| Mar-2024 | 5.31 |
| Apr-2024 | 2.95 |
| May-2024 | 7.76 |
| Jun-2024 | -2.79 |
| Jul-2024 | 4.58 |
| Aug-2024 | 9.83 |
| Sep-2024 | 10.23 |
| Oct-2024 | 1.56 |
| Nov-2024 | 2.38 |
| Dec-2024 | 8.99 |
Fundamental Analysis of Apollo Hospitals
Apollo Hospitals Enterprise Ltd is a leading healthcare provider in India, established in 1983 by Dr. Prathap C. Reddy. The company has pioneered private healthcare in the country, setting high standards for medical practices and hospital management. With a network of over 70 hospitals across various locations, Apollo Hospitals offers a wide range of services, including advanced digital health solutions.
The stock is priced at ₹6789.65, with a market cap of ₹97,624.75 crore and a modest dividend yield of 0.24%. It has delivered a strong 5-year CAGR of 33.66% despite a recent 1-month dip of -7.44%.
- Close Price ( ₹ ): 6789.65
- Market Cap ( Cr ): 97624.75
- Dividend Yield %: 0.24
- Book Value (₹): 7320.50
- 1Y Return %: 14.99
- 6M Return %: 5.21
- 1M Return %: -7.44
- 5Y CAGR %: 33.66
- % Away From 52W High: 11.13
- 5Y Avg Net Profit Margin %: 4.40
Fundamental Analysis of Fortis Healthcare
Fortis Healthcare is a prominent healthcare organization that operates a network of hospitals and clinics, providing high-quality medical services across various specialities. Established with the mission of offering accessible and affordable healthcare, Fortis Healthcare has earned a reputation for its commitment to patient care and advanced medical technology. With facilities located in multiple regions, Fortis Healthcare focuses on delivering comprehensive healthcare solutions, including emergency services, diagnostic procedures and specialized treatments.
The stock, priced at ₹663.40 with a market cap of ₹50,083.92 crore, has shown exceptional growth, achieving a 1-year return of 59.03% and a 5-year CAGR of 35.73%. However, it recently dipped 9.09% over the past month.
- Close Price ( ₹ ): 663.40
- Market Cap ( Cr ): 50083.92
- Dividend Yield %: 0.15
- Book Value (₹): 8556.14
- 1Y Return %: 59.03
- 6M Return %: 35.69
- 1M Return %: -9.09
- 5Y CAGR %: 35.73
- % Away From 52W High: 12.22
- 5Y Avg Net Profit Margin %: 4.90
Financial Comparison of Apollo Hospitals and Fortis Healthcare
The table below shows a financial comparison of Apollo Hospitals Enterprise Ltd and Fortis Healthcare Ltd.
| Stock | Apollo Hospitals | Fortis Healthcare | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 16702.8 | 19167.4 | 20627.90 | 6696.05 | 7239.45 | 7380.43 |
| EBITDA (₹ Cr) | 2139.9 | 2498.9 | 2903.30 | 1258.51 | 1331.41 | 1450.17 |
| PBIT (₹ Cr) | 1524.5 | 1811.9 | 2184.70 | 942.77 | 988.91 | 1084.98 |
| PBT (₹ Cr) | 1143.7 | 1362.5 | 1718.90 | 813.68 | 857.96 | 945.63 |
| Net Income (₹ Cr) | 819.1 | 898.6 | 1183.10 | 588.73 | 598.88 | 655.82 |
| EPS (₹) | 56.97 | 62.5 | 82.28 | 7.8 | 7.93 | 8.69 |
| DPS (₹) | 15.0 | 16.0 | 16.00 | 1.0 | 1.0 | 1.00 |
| Payout ratio (%) | 0.26 | 0.26 | 0.19 | 0.13 | 0.13 | 0.12 |
Points to be noted:
- (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of Apollo Hospitals and Fortis Healthcare
The table below shows a dividend paid by the company.
| Apollo Hospitals | Fortis Healthcare | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 30 May, 2024 | 16 Aug, 2024 | Final | 10 | 24 May, 2023 | 20 July, 2023 | Final | 1 |
| 8 Feb, 2024 | 20 Feb, 2024 | Interim | 6 | ||||
| 30 May, 2023 | 18 Aug, 2023 | Final | 9 | ||||
| 14 Feb, 2023 | 24 February, 2023 | Final | 6 | ||||
| 25 May, 2022 | 18 Aug, 2022 | Final | 11.75 | ||||
| 23 Jun, 2021 | 18 August, 2021 | Final | 3 | ||||
| 25 Jun, 2020 | 17 Sep, 2020 | Final | 2.75 | ||||
| 13 Feb, 2020 | 25 Feb, 2020 | Interim | 3.25 | ||||
| 30 May, 2019 | 12 September, 2019 | Final | 6 | ||||
| 30 May, 2018 | 12 September, 2018 | Final | 5 | ||||
Advantages and Disadvantages of Investing in Apollo Hospitals
Apollo Hospitals Enterprise Ltd
The primary advantage of Apollo Hospitals Enterprise Ltd lies in its position as a leading healthcare provider, supported by a vast network of hospitals, advanced medical technology and a strong reputation for quality care and innovation.
- Extensive Network: Apollo Hospitals operates one of India’s largest healthcare networks, offering a wide range of medical services through its hospitals, clinics and pharmacies, ensuring accessibility for patients across urban and rural areas.
- Focus on Innovation: The company invests significantly in advanced medical technologies, telemedicine and AI-driven diagnostics, staying ahead in delivering efficient and cutting-edge healthcare solutions to patients.
- Strong Brand Equity: With decades of trust and recognition, Apollo Hospitals is synonymous with quality healthcare, attracting a steady flow of patients and strengthening its competitive position in the industry.
- Diversified Revenue Streams: Apart from hospitals, Apollo earns through pharmacy operations and health insurance services, creating a balanced and resilient revenue model that supports its growth during economic uncertainties.
- Global Accreditation: Many Apollo facilities have international accreditations, enhancing their credibility and attracting medical tourism, further boosting revenue and establishing Apollo as a global leader in healthcare services.
The main disadvantage of Apollo Hospitals Enterprise Ltd is its high dependence on significant capital investments and operational costs, which can pressure margins and profitability, especially during periods of reduced patient footfall or regulatory constraints.
- High Debt Levels: Apollo Hospitals’ expansion and operational needs have led to substantial debt, increasing financial liabilities and the risk of higher interest costs impacting its profitability.
- Cost Sensitivity: The company operates in a cost-sensitive sector, where affordability for patients often conflicts with rising operational and medical equipment expenses, affecting overall margins.
- Regulatory Challenges: Healthcare regulations and pricing controls on medical procedures or drugs can limit revenue growth and impose compliance-related costs on Apollo Hospitals.
- Dependence on Urban Markets: A large portion of Apollo’s revenue is derived from urban centres, leaving it exposed to economic or competitive pressures specific to metropolitan regions.
- Competition Pressure: The presence of other private hospital chains and government healthcare initiatives intensifies competition, requiring Apollo to consistently innovate and maintain high-quality services, adding to its operational burden.
Advantages and Disadvantages of Investing in Fortis Healthcare
Fortis Healthcare Ltd
The primary advantage of Fortis Healthcare Ltd lies in its extensive network of multi-speciality hospitals and diagnostic centres, supported by a reputation for quality healthcare services and a focus on patient-centric care and innovation.
- Comprehensive Service Portfolio: Fortis Healthcare offers a wide range of medical services, including multi-speciality treatments, diagnostics and preventive care, catering to diverse healthcare needs under one roof for enhanced patient convenience.
- Strong Brand Presence: With a trusted name in healthcare, Fortis Healthcare attracts a steady flow of patients, leveraging its reputation for quality care and clinical expertise in critical and complex medical cases.
- Focus on Technology: Fortis invests in advanced medical technologies and electronic health systems, ensuring efficient diagnostics, treatments and seamless patient experiences while staying competitive in the evolving healthcare sector.
- Growing Medical Tourism: The company benefits from increasing international patient inflow, leveraging its world-class facilities and cost-effective treatments, contributing significantly to its revenue growth.
- Strategic Expansion: Fortis continues to expand its footprint through new facilities and acquisitions, enhancing its reach across India and abroad while consolidating its position in the competitive healthcare market.
The main disadvantage of Fortis Healthcare Ltd is its exposure to high operational costs and debt, which can strain profitability, especially when coupled with industry challenges like regulatory pressures and competition in the private healthcare sector.
- High Operational Costs: Running multi-specialty hospitals involves significant expenses, including staff salaries, medical equipment and facility maintenance, which can erode profit margins, particularly during periods of reduced patient inflow.
- Debt Burden: Fortis Healthcare’s expansion strategy has led to substantial debt, increasing financial liabilities and vulnerability to interest rate fluctuations, potentially impacting its financial stability.
- Regulatory Challenges: Strict government regulations on pricing, compliance and approvals for medical procedures can limit revenue potential and add to operational complexities for Fortis Healthcare.
- Intense Competition: The private healthcare sector is highly competitive, with rival hospital chains offering similar services, requiring Fortis to continuously invest in quality, technology and marketing to maintain its market share.
- Urban-Centric Revenue Dependence: Fortis generates most of its revenue from urban centres, leaving it exposed to economic downturns or competition in metropolitan areas while limiting its growth potential in underserved rural regions.
How to Invest in Apollo Hospitals and Fortis Healthcare Stocks?
Investing in Apollo Hospitals and Fortis Healthcare stocks requires a thorough analysis of their financial performance, growth strategies and market dynamics while using a reliable brokerage platform like Alice Blue for seamless and cost-effective trading.
- Research Fundamentals: Study the financial statements, revenue growth and profit margins of Apollo Hospitals and Fortis Healthcare to understand their performance and potential for long-term returns.
- Track Industry Trends: Analyze trends in the healthcare sector, such as rising medical tourism, increasing demand for quality healthcare and regulatory changes, as these directly impact the growth of both companies.
- Set Investment Goals: Define your investment objectives, risk appetite and holding period to align your strategy with the expected performance of these healthcare stocks.
- Use Alice Blue for Trading: Alice Blue offers a user-friendly platform, low brokerage charges and advanced trading tools, making it an ideal choice for investing in Apollo Hospitals and Fortis Healthcare stocks.
- Monitor Regularly: Keep track of stock performance, quarterly results and industry developments to make informed decisions and rebalance your portfolio as needed for optimal returns.
Apollo Hospitals vs. Fortis Healthcare – Conclusion
Apollo Hospitals leads the healthcare sector with its vast network, advanced technology and global reputation. It excels in medical tourism and innovation, offering comprehensive services. Its strong financial performance and strategic expansion make it an attractive option for long-term investors seeking growth in healthcare.
Fortis Healthcare stands out for its multi-speciality hospitals, diagnostic services and focus on patient-centric care. With a growing international presence and emphasis on quality, it caters to diverse medical needs, making it appealing to investors looking for stability and consistent returns in the healthcare industry.
Healthcare Sector Stocks – Apollo Hospitals vs. Fortis Healthcare – FAQ
1. What is Apollo Hospitals?
Apollo Hospitals is a leading healthcare institution based in India, renowned for its advanced medical services and innovative healthcare solutions. Founded in 1983, it operates a network of hospitals and clinics, providing high-quality patient care, speciality treatments and cutting-edge technology to improve health outcomes.
2. What is Fortis Healthcare?
Fortis Healthcare is a prominent healthcare provider based in India, specializing in hospital services, diagnostics and health-related solutions. It operates a network of multi-speciality hospitals and clinics, focusing on delivering quality medical care and advancing healthcare standards through innovation and patient-centric services.
3. What are Healthcare Sector Stocks?
Healthcare sector stocks represent companies involved in providing medical services, manufacturing pharmaceuticals, producing medical devices and operating hospitals or diagnostic centres. These stocks, including Apollo Hospitals and Fortis Healthcare, offer opportunities for investors to benefit from growing healthcare demand, innovation and advancements in medical technologies and services.
4. Who is the CEO of Apollo Hospitals?
The CEO of Apollo Hospitals is Suneeta Reddy. She has been with the company for over 30 years and has played a key role in its expansion, focusing on enhancing healthcare services and technological advancements and strengthening Apollo’s leadership in the Indian healthcare industry.
5. What are the main competitors Of Apollo Hospitals and Fortis Healthcare?
The main competitors of Apollo Hospitals and Fortis Healthcare include Max Healthcare, Manipal Hospitals, Narayana Health and Medanta. These companies operate large hospital networks, offering similar medical services and compete in the healthcare sector for market share, quality care and patient trust across India and internationally.
6. What Is The Net Worth Of Fortis Healthcare vs. Apollo Hospitals?
As of recent estimates, Fortis Healthcare has a net worth of around ₹18,000–₹20,000 crore, while Apollo Hospitals is valued at approximately ₹40,000–₹45,000 crore. Apollo Hospitals holds a larger market share and financial strength due to its extensive network and global presence in healthcare.
7. What Are The Key Growth Areas For Apollo Hospitals?
Key growth areas for Apollo Hospitals include expanding its hospital network both domestically and internationally, leveraging technology through telemedicine and AI for improved patient care, focusing on medical tourism and enhancing its healthcare services across various specialities, all while maintaining a strong reputation for quality care and innovation.
8. What Are The Key Growth Areas For Fortis Healthcare?
Key growth areas for Fortis Healthcare include expanding its multi-speciality hospital network both within India and globally, increasing its focus on digital healthcare services like telemedicine, improving patient care through advanced medical technologies and tapping into the growing medical tourism sector to attract international patients seeking affordable healthcare.
9. Which Company Offers Better Dividends, Apollo Hospitals Or Fortis Healthcare?
Apollo Hospitals generally offers better dividends compared to Fortis Healthcare, thanks to its stronger financial position and consistent profitability. Apollo’s robust cash flow and growth in revenue allow it to provide more attractive dividend payouts, whereas Fortis, focusing on expansion, tends to reinvest its earnings into business growth.
10. Which Stock Is Better For Long-term Investors, Apollo Hospitals Or Fortis Healthcare?
Apollo Hospitals is generally considered a better option for long-term investors due to its strong financial track record, extensive network, global presence and consistent growth. Fortis Healthcare, while promising, faces higher competition and financial volatility, making Apollo a more stable and reliable choice for long-term investments.
11. Which Sectors Contribute Most To Apollo Hospitals And Fortis Healthcare’s Revenue?
For Apollo Hospitals, the hospital and healthcare services sector contributes the most to its revenue, driven by its extensive network of multi-speciality hospitals. Fortis Healthcare primarily earns from its hospital operations as well, with additional revenue from diagnostic services and outpatient care, contributing significantly to its overall income.
12. Which Stocks Are More Profitable, Apollo Hospitals Or Fortis Healthcare?
Apollo Hospitals is generally more profitable than Fortis Healthcare due to its larger market share, extensive hospital network and diversified revenue streams, including medical tourism. Fortis Healthcare, while profitable, faces more competition and financial challenges, leading to comparatively lower margins and profitability than Apollo Hospitals.
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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.
