Remain invested in Fortis Healthcare & Apollo Hospitals: Abhishek Agarwal

Abhishek Agarwal, Director, Fortune Interfinance Ltd. in an interview with ET Now talks about Fortis Healthcare and Apollo Hospitals.

Fortis Healthcare, Apollo Hospitals are some of your pharma picks. Why do you like these counters?

Quickly let me tell you the market size of this particular sector. In the hospital chain, we are seeing about $30 billion market. Now if we go only Apollo as well as Fortis, both the companies have a market cap of about 5000 crore and 6000 crore, that makes about $2 billion.

Therefore that shows that how much potential is there. Now going with the availability of beds, the ratio suggests that for 1000 people, you have about 0.85. That is the ratio works out for India whereas for China, it is 2.2 and for USA, it is about 3.2. So again we can see the demand is phenomenal for coming next 10 years.

Seeing that we are about $1.3 trillion economy size in terms of GDP and expected to be doubling up in next 10 years, the pharma should do very well.

Now going with Apollo and Fortis, both are market leaders in their own segments. Fortis have about 28 hospitals and expected to add about another 12 in the next coming 2 years whereas Apollo is about having 50. Therefore both the stocks one has to remain invested. Now even if we go to a doctor and ask for a prescription, it comes about Rs 1000-1500 for consultation, when you go for buying a medicine, it is about just Rs 100.