ADVERTISEMENT

Healthcare Sector Outlook 2022 - Business Recovering But Omicron Lurking: ICICI Securities

Healthcare Outlook 2022 - Business Recovering But Omicron Lurking: ICICI Securities

<div class="paragraphs"><p>Healthcare workers treat a patient.&nbsp;(Photographer: Noriko Hayashi/Bloombergg)</p></div>
Healthcare workers treat a patient. (Photographer: Noriko Hayashi/Bloombergg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We remain positive on the healthcare space amid secular growth and expect a healthy recovery in non-Covid-19 business, leading to potential margin improvement from cost-control initiatives and change in mix.

Sector companies under our coverage have seen steep appreciation in stock price over the last year (~50%) driven by both hospital and diagnostic companies. Key notable points for CY22:

  1. occupancy level is expected to remain strong and recovery in international patients to improve mix for hospitals,

  2. likely improvement in volume growth for diagnostic companies with shift from unorganised to organised players,

  3. reducing contribution from Covid-19 business; however, Omicron variant may change assumptions and

  4. Ebitda margin to sustain with improving business mix and continuation of cost-control initiatives.

Click on the attachment to read the full report:

ICICI Securities Healthcare Outlook 2022.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.