I dont track shalby hospital too closely. And I am not too excited by hospitals as a sector as it remains an asset heavy business and its very difficult for hospitals to make decent amount of money. Among the listed players maybe a couple of players might do well at some point of time, say narayana or apollo hospital etc but there are plenty of other sectors to choose from especially in current market scenario rather than look at hospitals. The stock price has corrected a lot recently as I can see from charts on screener so one can make money on any bouncebacks but I am not too sure about it being a buy and forget type of company.
@Kuldeepjadeja I used to track and own kitex in recent past but since the correction began I was worried about the fate of small and midcaps and hence had exited. Premco doesn’t boast of a great track record of growth. Just like shalby stock price, both kitex and premco have corrected a lot and hence may provide trading gains but in current market scenario, I think these kind of companies are at best trading bets.
In general I think a lot of people are getting carried away by statistical cheapness based on PE or correction in stock price in terms of percentage correction from top or some such other parameter. While it might be a good ground to look out as a filtering space, one needs to go one level higher and try to find out companies which have corrected due to Corona and in all likelihood are going to bounce back once this problem gets over.
Meanwhile in the short to medium term time frame it could be interesting to look at sectors like pharma and speciality chemicals. Pharma sector in particular in last week has seen a lot of stocks posting all time high or 52 week highs. It seems market senses there is something going for this sector in current environment. If one thinks in terms of business prospects, pharma being classified as essential segment, most of pharma companies have been able to continue production to varying degrees even during lockdown. Demand wise, it seems exports can get tailwinds out of supply chain issues in other geographies and strong dollar. Domestic pharma might see some headwinds because all throughout the lockdown (and I think to some extent few weeks post lockdown also going ahead) a lot of doctors have closed down their clinics/hospitals or have curtailed their workload to a large extent. This should affect generation of prescriptions and impact sales of domestic segment of pharma segment.
But irrespective of what is happening on the business front, after a long time I am seeing a lot of stocks from a single segment showing very bullish chart formations and all time highs and 52 week highs. My guess is going ahead, pharma can be a sector to watch/study to uncover potential winners. The sector has a lot of listed companies and hence one can have a big canvas to choose from.