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:

1.Hospitals:

a.Apollo Hospitals
b.Fortis Healthcare
c.Indraprastha Medical
d.Kovai Medical Center & Hospital
e.Dr. Agarwal's Eye Hospital
f. Max India

2.Medical Equipment:

a.Opto Circuits.
b.Poly Medicure.
c.Span Diagnostics.

3.Wellness:

a.Zydus Wellness (Sugar Free brand)
b.Talwalkars

Disclosure:I own shares in Apollo Hospital, Kovai Medical, Dr Agarwal's Eye Hospital, Max India, Opto Circuits, Poly Med & Zydus Wellness.

Kris, are you comfortable with the valuation (P/E) of Zydus Wellness?

I have a little of Indraprastha but it seems a bit on the sleepy side (as a stock).

@Vasa

Zydus I had purchased at 160.

At current prices it is on the very expensive side, just six months ago it was 280 and now 550.

June quarter's results too were disappointing, but it is very tough to take a call on a single quarter's performance.

In my opinion the company can grow top-line at 40 % & bottom-line at 30 % over the next 3 years.

For fresh purchases, a significant correction (25-30%) should provide a decent entry.

Indraprastha is a value play (dividend) and hasn't been able to cross 60/65 range on the upside. You could switch to Apollo Hospitals for a little more excitement.

India's hospital chains eye overseas expansion:

http://www.moneycontrol.com/news/bus...on_476478.html