Healthcare is one of India’s largest sectors in terms of revenue and employment. The sector employs over 7.5 million people and with the massive progress in telemedicine and healthcare automation, it is expected to create up to 3.5 million new tech jobs. The private sector in healthcare industry provides most secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities.
Add to this the government allocation of Rs 99,858 cr (US$ 11.50 billion) to the healthcare sector in the Union Budget 2025-26 for the development, maintenance, and enhancement of the country’s healthcare system. This is a 9.78% increase from the previous allocation of Rs 90,958 cr (US$ 10.47 billion) in FY25.
No wonder the Warren Buffetts and DIIs have had their eyes set on this sector and more so hospitals which are the frontrunners in the sector, which is checking all the boxes. 2 such hospital stocks have seen big investments by super investors and DIIs alike, which every investor must know about.
Fortis Healthcare Ltd
Incorporated in 1996, Fortis Healthcare Ltd is a leading integrated healthcare service provider in India.
With a market cap of Rs 80,071 cr, the company operates its healthcare delivery services in India, Nepal, Dubai, and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds.
Super Investor Backing and Strong Financials
India’s Warren Buffett Rekha Jhunjhunwala has held a stake in the company since September 2017. She held a 4.1% stake as of the quarter ending June 2025, and the filing details for the quarter ending September 2025 are awaited.
Domestic institutional Investors put together have a 30% stake in the company, with names like HDFC Arbitrage Fund, Kotak Equity Hybrid Fund, Aditya Birla Sun Life, Nippon India ETF, SBI Life Insurance, Axis Bank Ltd and Edelweiss Business Cycle Fund in the lead.
The sales of the company grew at a compounded growth rate of 11% from Rs 4,632 cr in FY20 to Rs 7,783 cr in FY25. Until the quarter ending June 2025, the company had already logged in sales of Rs 4,174 cr.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew from Rs 610 cr to Rs 1,588 cr in the same period logging in compounded growth of 21%. And for the 2 quarters ending June and September 2025, the company has recorded EBITDA of Rs 926 cr. The number for the quarter ending September 2025 is highly awaited.
The company logged in a compounded growth of 70% from Rs 91 cr in FY20 to Rs 809 cr in FY25 when it comes to net profits. And by the quarter ending June 2025, the company had recorded in Rs 455 cr in profits already.
The share price of Fortis Healthcare Ltd climbed by 52% from Rs 133 in October 2020 as per screener.in to its current price of Rs 1,060 as of closing on 10th October 2025.
The stock is trading at a PE of 87x which is higher than the current industry median of 59x. The 10-Year median PE of Fortis is 61x and the industry median for the same period is 48x.
As per the latest investor presentation from August 2025, the company’s management is confident of a sustained momentum, backed by clear growth levers across geographies. The management also says they shall stick to a disciplined approach to capital allocation.
The Supreme Court initiated suo moto proceedings against Fortis Healthcare centred on contempt charges against former promoters Malvinder and Shivinder Singh, linked to their 2018 stake sale to IHH Healthcare amid a $550M Daiichi Sankyo arbitration dispute over the 2008 Ranbaxy sale. The supreme court found the Singhs guilty of misleading the court in 2022, sentencing them to six months in prison and ordering a forensic audit of the deal in question. Fortis has since resolved major issues, related disputes, but IHH’s claims against Daiichi still persist.
Yatharth Hospital & Trauma Care Services Ltd
Incorporated in 2008, Yatharth Hospital and Trauma Care Services Limited is a multi-care hospital at Noida, Greater Noida, and Noida Extension, Uttar Pradesh.
With a market cap of Rs 6,040 cr, Yatharth Hospitals has the 8th and 10th largest private hospitals in the NCR, with 7 hospitals across North India with 87% of the beds in Metro.
Rapid Growth Attracts a Star Investor
Warren Buffett of India and highly followed investor Mukul Agarwal bought a 1.1% stake worth Rs 89 cr in the company as per the filing for quarter ending June 2025.
Apart from him, Domestic institutional Investors also have almost a 14% stake in the company, with names like Kotak Multicap fund, Bandhan Smallcap Fund, ICICI Prudential Pharma Healthcare and Diagnostics Phd Fund and SBI Life Insurance company holding substantial stakes.
The sales of the company have grown at a compounded rate of 29% from Rs 123 cr in FY20 to Rs 442 cr in FY25. Until the end of the quarter of June 2025, the sales were at Rs 130 cr.
EBITDA jumped from Rs 31 cr in FY20 to Rs 130 cr in FY25, logging in a compound growth of 33%. For the period of April 2025 to June 2025, the EBIDTA was already at Rs 35 cr.
Net profits of the company logged in a strong compounded growth of about 155% from Rs 1 cr in FY20 to Rs 88 cr in FY25.
The share price of Yatharth Hospitals jumped by 90% in just the last 6 months, from Rs 426 in April 2025 to Rs 809 as of closing on 10th October 2025.
The company’s stock is trading at a PE of 85x, while the industry median is 59x. The 10-Year median PE for the industry is however 48, while it would be too soon to look at the long-term median of Yatharth Hospital.
Yatharth Hospitals is executing a very focused growth plan in North India, backed by a solid upgrade of new assets, strong ARPOB (Average Revenue Per Occupied Bed) and occupancy metrics, and a shift towards high-end super-speciality services.
Time For Your Portfolio’s Health Check-up?
Mukul Agarwal and Rekha Jhunjhunwala are not unknown names. They are two of the most followed and look up to super investors of India, whose portfolio movements cause ripples across the board. That is why we call them the Warren Buffetts of India.
So, when them and some of the biggest names in the domestic institutional investors agree on a particular sector and some stocks in it, investors must take note. Like Fortis and Yatharth that we saw today. Two hospitals from the healthcare sector that boast of some solid financials and stronger investor backing.
How these two stocks will do in the months and years to come will be interesting to watch. But for now, it would be simply a clever idea to add them to a watchlist and watch them closely, as we wait for the strategy behind Agarwal and Jhunjhunwala’s picks to reveal itself.
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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