India hospital stocks extend losses on drug pricing concerns; Jefferies sees buying opportunity

Manipal Health Enterprises

01/10/2026 05:12

** Hospital stocks extend losses for second session on concerns over pricing caps on certain drugs
** Fortis Healthcare FOHE.NS, Max Healthcare MAXE.NS and Apollo Hospital APLH.NS down 1.3% to 2.4%
** Stocks slumped on Wednesday after apex court flagged high medicine pricing at in-house pharmacies
** Jefferies, rated 4/5 stars for overall rating accuracy by LSEG, says consumables and oncology drugs account for 15% to 20% of hospital revenue
** Estimates 2%-5% EBITDA hit, assuming 16% margin cap on oncology drugs and 5% for consumables like stents and implants
** Correction offers attractive entry points for companies which can offer sustainable high-teens EBITDA growth - Jefferies
** Prefers FOHE, Manipal Health MNIA.NS, APLH, MAXE and Global Health GLOH.NS 

(Reporting by Vivek Kumar M)
((VivekKumar.M@thomsonreuters.com;))