Hospital Stocks in Focus: KIMS, Max Healthcare and Apollo Hospitals set for upto 28% upside, says Goldman Sachs

Hospital Stocks to BUY: Goldman Sachs latest report finds India’s healthcare sector on the recovery path. The brokerage expects the country’s leading hospital operators to add more than 17,000 beds by FY30, a scale of expansion that reflects both rising demand and the lack of adequate medical infrastructure in many regions.

Goldman Sachs believes EBITDA growth will stay strong through FY25–28, supported by improving mix, better utilisation and continued margin gains. It added that fears of oversupply appear misplaced as several catchment areas still remain under-served, leaving ample room for disciplined expansion.

Max Healthcare leads the charge

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Among listed names, Max Healthcare stands out. The firm benefits from stable capacity expansion, high operating efficiency and a track record of timely project execution. Goldman Sachs expects a 23 per cent EBITDA CAGR and has initiated coverage with a BUY rating and a target of Rs 1,325, implying a 21 per cent potential upside.

KIMS: Market undervaluing new hospitals

The brokerage is equally upbeat on KIMS, projecting around 30% topline CAGR between FY25 and FY28. It noted that the market has not fully priced in the ramp-up of its newer facilities. Goldman Sachs began coverage with a BUY and set a target of Rs 900, pointing to a 28 per cent upside.

Fortis sees rating cut despite higher target

Fortis Healthcare, however, received a double downgrade to Neutral from Buy. Even so, the target price has been lifted to Rs 965 from Rs 925, offering a limited 8.6 per cent upside.

Positive stance intact on Apollo

On Apollo Hospitals, the brokerage maintained its BUY call with a target of Rs 8,550, signalling room for an 18 per cent rise as the chain continues to benefit from improving operating metrics.

Overall, Goldman Sachs’ view suggests the sector is entering a fresh expansion cycle—one supported by solid demand, better profitability and sizeable capacity additions over the next few years.