Narayana, HCG better placed in current challenging environment

Focus on specialty services, entering smaller cities can drive growth

Leading players in the hospital segment such as Apollo Hospitals, Fortis Healthcare and Narayana Hrudayalaya have seen a sharp correction in their share prices, which hit a 52-week low recently. While the lower-than-expected 

June quarter performance (weighed down by the stent price control) impacted the Street’s sentiments, an expected price control on knee replacement implants has led to further pressure for Apollo and Fortis. Negative news flow on the regulatory front has been a cause of concern for the companies as well as investors.

For Fortis, the volatility has also been due to reports related to a possible change in