Centrum Broking’s Sumit Gupta Decodes Healthcare Sector Trends For Investors

The healthcare sector in India is poised for a strong growth in the medium to long term, according to Sumit Gupta, research analyst at Centrum Broking Ltd. Speaking to NDTV Profit, he shared insights on the future of the healthcare sector, focusing on key growth drivers and emerging trends.

“In the hospital category, there is a lot of expansion going on. Considering this, we expect a lot of competition in this sector. While we might experience some volume pressure in the near term, our outlook for the medium to long term is positive.”

While discussing investment trends, Gupta highlighted the increasing interest from venture capital investors in the healthcare sector, particularly in hospitals.

“The key drivers are the vast opportunities within the healthcare sector, especially in the hospital segment. I believe this trend will continue, leading to increased investments in hospital infrastructure,” he said.

Gupta emphasised that hospitals must expand geographically while maintaining high-quality services, which requires technological expertise.

“These investments are necessary to ensure quality and to retain top-tier medical professionals,” he added.

Addressing the ongoing consolidation within the healthcare space, Gupta indicated that larger hospitals are well-positioned to lead the charge.

“We expect consolidation to continue for the next few years across subsectors, particularly in Tier-2 and Tier-3 cities. I see large-cap hospitals taking the lead in this consolidation process,” he said.

Gupta also discussed the future of medical tourism in India, describing it as an attractive industry.

“India is an appealing destination for patients worldwide due to its affordability for major surgeries compared to global averages, access to high-quality doctors, and good connectivity to most countries. Additionally, the large NRI population visiting India for treatment is a significant driver,” he said.

As hospitals expand their speciality segments, Gupta identified key players likely to benefit from this trend.

“Within specialities, Max is the largest in oncology. Additionally, smaller hospital chains like Artemis Medicare are expected to experience incremental growth,” he said.

When asked about companies focusing on brownfield capex rather than greenfield ones, Gupta singled out Artemis as a top pick.

“Artemis has increased its bed capacity and plans to expand further. Given their current bed capacity, I see economies of scale playing to their advantage,” he remarked.