Before investing in healthcare stocks, you should get a hold of the fact that it’s similar to selecting a doctor. You look for a good reputation and reliability, just like you would when choosing between Star Health and Apollo Hospitals stocks. These two are big names in the Indian healthcare area, but they focus on different parts of this industry.
Let us explain the key points so that it is easier for you to understand which one may be best suited for your investment portfolio.
Understanding the Basics
Star Health is like a shield of protection. This company is an insurance provider with a market capitalisation of Rs. 33,498.69 Crore. You can think of it as buying yourself a safety net in case you fall when you have medical expenses. In short, Star Health will support you financially.
Additionally, Apollo Hospitals is analogous to a multi-specialty medical center. It operates as a series of hospitals that offer healthcare services directly. So, when we talk about Apollo, it means a location wherein you can receive treatment or undergo surgeries for different ailments and get your health examined – it’s the active healthcare provider.
Financial Performance and Growth
Star Health’s growth in its customer base and handling of claims must be considered. In the last few years, there has been a continuous rise in the number of policyholders at Star Health, resulting in a spike in Star Health’s share price. This is very important because having more policyholders leads to an increase in premium income. However, just as any insurance company should manage the claims ratio, Star Health has to balance the proportion of claims it has to pay out.
Apollo Hospitals’ financial health has been really on the rise in the last decade. As we see, the additional hospitals and specialised services have helped to increase their revenue over time. Think of it like a tree growing more branches; each new hospital or service adds to the total strength of Apollo.
Market Position and Competition
Star Health is a significant player in the health insurance market. It stands apart as it concentrates solely on providing coverage for medical expenses. This focus allows it to innovate and provide customised policies, similar to how speciality shops offer distinct products that big-box retailers do not have.
Apollo Hospitals is a famous name in the healthcare field, often ranking at the top amongst leading private hospitals worldwide. The Apollo Hospital share price is an indication of the same. Apollo has an advantage in its range of care and its high-level medical technology, making it a favourite among patients.
Making the Choice
If you are pondering over the right healthcare stock, try to forecast which aspect of healthcare you believe will have a higher growth rate. If you assume that more individuals will purchase health insurance to safeguard their finances, then Star Health might be seen as an encouraging selection.
Alternatively, Apollo Hospitals could be a better choice if you believe in the increasing need for high-quality healthcare services and advanced medical treatments. It is wise to put your trust in the proven power of analytical tools and research reports and make an informed decision.
Reliable and leading stock research apps like Research 360 can help. It is a comprehensive stock market research and analysis tool Motilal Oswal offers.
Final Thoughts
Star Health and Apollo Hospitals have deep roots in the healthcare sector but cater to different requirements. Your selection of healthcare sector stocks should match your investment approach. Be it the protective cover of Star Health or the direct care from Apollo Hospitals, both hold promise as potential beneficial elements for your investment collection.
