Healthcare Stocks Rally: Are Pharma & Hospital Shares Still Worth Buying Now?

Pharma and hospital stocks have emerged as top performers, but rising valuations are raising investor concerns. Harsha Upadhyaya, CIO, Kotak Mahindra AMC, remains positive on both segments, citing strong earnings growth and long-term demand driven by low healthcare penetration in India. While he believes pharma valuations remain relatively reasonable, he advises caution in hospital stocks, where valuations have become stretched. The expert expects the healthcare sector to continue delivering healthy growth but recommends maintaining a diversified portfolio with exposure to financials, industrials, and consumer services alongside healthcare investments.