Narayana, Max Healthcare shares gain up to 5%, hit new highs in weak market

India's healthcare sector is on the cusp of significant transformation, driven by increased public and private investments, policy initiatives, and demographic shifts, believe analysts.

Shares of hospitals and healthcare services providers were in demand, and rallied up to 5 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market on the back of a healthy outlook.

 

Shares of Narayana Hrudayalaya hit a new high of ₹1,906.15, surging 5 per cent on the BSE in intra-day trade. The stock surpassed its previous high of ₹1,872.85 touched on April 21, 2025.

 

The share price of Max Healthcare Institute also hit a new high of ₹1,234.70, gaining 3 per cent in intra-day trade. It surpassed its earlier high of ₹1,227.50 touched on January 8, 2025.

 

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Thyrocare Technologies (up 5 per cent at ₹1,028.90) and Krishna Institute of Medical Sciences or KIMS (up 3 per cent at ₹683.05) were up in the range of 3 per cent and 5 per cent. In comparison, the BSE Sensex was down 0.73 per cent at 81,096 at 02:01 PM.  READ STOCK MARKET LATEST UPDATES TODAY LIVE 

Most Indian hospitals have now broken even and started contributing to profits. There is a rising demand for specialized treatments, including oncology and high-end surgical procedures. This trend is contributing to higher ARPOB (Average Revenue per Occupied Bed) and overall revenue growth.

 

According to analysts at Choice Equity Broking, accounting for ~5-7 per cent of revenue, medical tourism is expected to grow at nearly double the overall rate in the mid-term. Factors such as normalization in the geo-political issue, operationalization of a new airport in Noida, affordable treatment costs, world-class facilities, and skilled medical personnel will continue to attract international patients, particularly from Southeast Asia and the Middle East, analysts said.

 

Meanwhile, India's healthcare sector is on the cusp of significant transformation, driven by increased public and private investments, policy initiatives, and demographic shifts. Despite the current challenges, including disparities in healthcare infrastructure and the availability of medical services in the workforce between urban and rural areas, the future looks promising with sustained efforts and strategic investments. As of 2022, India's healthcare spending accounted for 3.3 per cent of the GDP; however, with sustained efforts, it is anticipated to reach 5 per cent by 2030, according to CareEdge Ratings.

 

Looking forward, the rising share of the population aged over 45 years, coupled with income growth, is also expected to catalyse higher demand for quality healthcare services. This demand will likely translate into sustained investments across the entire value chain, from medical education and training to hospital infrastructure and digital healthcare technologies, the rating agency said.  ALSO READ | Gold-linked stocks: Manappuram Fin hits all time high, Muthoot Fin gains 

As per latest available data from National Health Accounts (NHA), government healthcare spending has increased significantly in recent years. The government health expenditure (GHE) as a percentage of GDP grew from ~1.1 per cent in FY15 to ~1.8 per cent in FY22. Similarly, its share within the general government expenditure (GGE) saw a notable rise, climbing from ~3.9 per cent in FY15 to ~6.1 per cent in FY22. 

 

GHE as a percentage of total health expenditure (THE) grew from 40.8 per cent in FY18 to 48.0 per cent in FY22, demonstrating a shift toward government-funded healthcare. These trends highlight the government's growing commitment to strengthening the healthcare sector. Furthermore, per capita government health expenditure rose from ₹ 1,753 in FY18 to ₹ 3,169 in FY22 at a 16 per cent CAGR, indicating increased spending on healthcare services per individual, analysts at Elara Capital said in the Health Insurance sector update.