A hospital is just an empty building without proper medical equipment and doctors. Luckily, there are 70,000 such buildings in India equipped with equipment and doctors. Surprisingly, that is less than half of our country’s current demand.
So will this supply-demand mismatch work out? Let us find out. In this article, we will take a look at the medical equipment sector and the top medical equipment stocks in India.
The medical equipment industry: An overview
The requirement for more hospitals due to the rising population and the general public’s rising ability to afford expensive treatments is pushing the demand for medical equipment. The demand has outstripped the supply to such an extent that India has an import dependency for fulfilling this demand. As of FY24, India imported ₹7,490 crore worth of medical devices. This is a major growth opportunity for domestic players.
All the magic-like advancements in the medical sciences sector were fairly tales just a couple hundred years ago and what seems magic now will be routine procedures in the near future. The success rate of surgeries and other treatments has risen by a lot. For example, the success rate of neurosurgery in India has reached 70-80%. This continuous advancement in the medical sector and the tremendous amount of research being done worldwide will surely play a part in boosting profitability in the medical equipment sector.
Also read: The healthcare industry in India: An overview
Anywhere in this world, the government works hard to provide five basic facilities to the public, which are good roads, 24/7 electricity, education, housing, and state-of-the-art hospitals. The Indian government is no different, in the interim budget of fiscal year 2025, the Indian government allocated ₹89,287 crores for the healthcare industry. This move will ensure better medical arrangements for the people and good cash flows for hospitals, pharmaceuticals, and medical equipment manufacturers.
Also read: Indian elections & stock market volatility
Key players in the medical equipment sector
Let us take a look at the best medical equipment stocks in India ranked by market value as on 28th November, 2024.
1. Poly medicure ltd: Poly medicure is a leading manufacturer of medical devices, it has eight facilities that manufacture a wide spectrum of products like medical gloves, x-ray machines, blood infusion devices, etc. The company generated 70.74% of its revenue abroad in the first half of the 2025 fiscal year. The company is working towards establishing three new manufacturing units in the next couple of years.
2. Prevest Denpro ltd: To prevent and diagnose dental conditions, Prevest denpro has been making medical equipment for the dental industry since 1999. The company is heavily export-oriented and it has a clientele in more than 90 nations, who contributed 57% to its revenue in the first two quarters of financial year 2025. The company has collaborated with 12 dental institutes in India for research purposes.
3. Nureca ltd: Nureca is a healthcare and wellness products manufacturing company that has over fifty products approved by the UD FDA and has over 102 patents to their name. The company sells its goods to customers based in five countries under three brand names which are Dr Physio, Dr. Trust, and Trumom.
4. Yash optics & lens ltd: With an experience of over 24 years in the vision correction solutions industry, Yash Optics makes high-quality lenses for spectacles and optics. The company manufactures customized lenses as per orders given by its customers at its facility located in Mumbai. Trading of optical lenses is also one of the company’s operations.
5. Hemant Surgical Industries ltd: The company has been involved in making medical equipment and disposable products since the last thirty plus years. Hemant surgical owns three manufacturing units in Maharashtra with 170+ employees. The company also runs and maintains dialysis centers.
Financial performance for the aforementioned companies in FY24:
| Fundamental metrics (In ₹ Cr) | Poly Medicure | Prevest Denpro | Nureca Ltd | Yash Optics & Lens | Hemant Surgical |
| Market cap as of 29 Nov, 2024 | 27,752 | 691 | 282 | 203 | 128 |
| Sales | 1,375 | 56 | 91.93 | 41.11 | 106 |
| Expenses | 1,013 | 36 | 102.13 | 26.51 | 95 |
| Profit before tax | 344 | 21 | -2.54 | 12.12 | 13 |
| Net profit | 258 | 16 | -1.79 | 9.02 | 10 |
| 1 year Return as on 29 Nov, 2024 | 79.52% | 32.87% | -21.46% | N/A | -27.44% |
Past state of performance does not guarantee continuity in the future
Key considerations
If a company starts manufacturing medical gloves, and it invests ₹20 crores in establishing a small manufacturing unit, and starts making medical gloves from a certain type of material, the business is going great. One fine day they receive news that the government has banned the use of that particular material for making medical gloves, now they have to spend more money to adjust for the new material. This change in government regulation is a very common factor that affects the medical equipment industry.
Competition from domestic as well as players from abroad also affects this industry. But unlike other industries, it is immune from cyclicality and seasonality because there is no season for medical equipment; it is required throughout the year.
Conclusion
Now that you have understood the basics of the medical equipment industry, what factors affect it, and saw the best medical equipment stocks, you are ready to conduct your in-depth research and invest according to your risk taking ability.
Also read: Risk tolerance and investment strategy
FAQs
1: Which is the biggest medical equipment company in India ?
Ans- The biggest category involves two verticals first being the market value and the second being the quantum of production. So, on both these verticals Poly medicure holds the first place as the biggest medical equipment manufacturer. This company owns eight manufacturing units and is building three more. It generates more than 70% of its revenue from exports.
2: Which is the biggest medical equipment company in the world ?
With a market value of ₹17.4 trillion as of 28th November 2024, Abbott Laboratories of the US is the biggest medical equipment manufacturer in the world. Along with making medical devices this company also manufactures some pharma products. In FY23, the company earned a net income of ₹56,290 crore.
3: What is the difference between the pharmaceutical and medical equipment industry?
Pharma and the medical devices industry are quite different. The medicines that are directly or indirectly consumed by patients are a product of the pharma sector, but the devices involved in diagnosing and testing are made by the medical equipment industry. The body of a syringe is made by the medical device industry, but the medicine that gets injected is made by the pharma industry.
4: What factors negatively affect medical equipment stocks ?
An unfavorable change in regulation or government policy, competition from a big player domestically or from abroad, a change in technology, disruption of supply chains that might lead to non-availability of raw materials, etc, are some of the many factors that can negatively affect this industry.
5: Which medical equipment stock is the best investment for the long-term?
When looking for long-term investments, you can consider a company with good past financial performance and great prospects. Poly Medicure fulfills these criteria, it has logged rising revenues and net profits for the last 10 years and its prospects look good. (Conduct your research before investing).
