JM Financial initiates coverage on hospital stocks, sees upside potential up to 48%

The Indian hospital sector market cap surged 9x from Rs 37,500 crore in FY20 to Rs 3.5 lakh crore now. At a time when the sector was grappling with inefficiencies, high leverage and low ROCEs, Covid provided a much-needed impetus. This came from improved pricing, higher insurance coverage and dedicated shift towards complex surgeries such as transplants.