One would have thought that at a time when healthcare services turn essential, shares of hospital firms would be rising on the bourses.
However, many of these stocks are again under the weather, with losses ranging from 8-50% in 2020. It seems the sector will remain in this derating mode in the near term.
With the 21-day shutdown in force all over India, hospitals are seeing lower inflows of people in both their in-patient and out-patient departments.
Social distancing norms have also exacerbated the trend, with most hospitals reporting a fall in volumes. In a recent investor conference call, Fortis Healthcare Ltd said there has been a 35-50% decline in admissions to the in-patient department, while out-patient department visits have
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