Major healthcare companies like Apollo Hospitals, Fortis Healthcare, Max Healthcare and Medanta dropped by 13.5% in last month, the decline was caused by government regulations affecting the pricing of healthcare services
Government Regulations
New regulations have caused investors to worry, new rgulatons might limit hospitals how much they can charge for a service, Supreme court has ordered health department to come up with a proposal for regulating prices within six weeks , this has lead to an decrease of confidence in investors
Despite these stocks performing poorly short-term, analysts like motilal oswal holds a positive thought about company in the long term, they believe in the future one can expect regulations that won’t be as strict as now and will lead to growth in industry
Market Thought’s
Some analysts believe that stock price can fall more as the current prices are not fully account for the future challenges these companies will face, They believe these valuations are quite high and holds risk with them
But some analyst still think positively of the company and believe these short term bumps wont affect company in the long term, they hold a optimistic approach towards the healthcare sector and their leaders like apollo hospitals, there are still many opportunities that is left for these companies like insurance coverage in India and with increasing awareness about health these companies arent going anywhere
Investors are worried how much money these hospitals can make after new rules but they hold optimistic approach approach about the companies in long term
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