4th August 2010, 08:45 PM
Hospitals & Medical Services
Sector is a niche play providing a big opportunity for investors.
The growth rate for the sector was 16% CAGR for the past 5 years & is expected to continue for the next few years.
Major triggers are
1.Increasing population (mostly middle class) with increased life expectancy, number of older people (above 60) is expected to triple by 2025.
2.Huge gap in supply and demand, number of beds per 100,000 people is only 175 (urban).
For rural, the ratio is a dismal 10 beds per 100,000.
3.Rise in medical tourism (market is expected to grow to US$ 2 billion by 2012).
A look at some stocks now:
d.Kovai Medical Center & Hospital
e.Dr. Agarwal's Eye Hospital
f. Max India
a.Zydus Wellness (Sugar Free brand)
Disclosure:I own shares in Apollo Hospital, Kovai Medical, Dr Agarwal's Eye Hospital, Max India, Opto Circuits, Poly Med & Zydus Wellness.