India’s hospital stocks are soaring. Here’s why it might be a trap

India’s hospital sector is growing fast, with strong revenue and margin performance backed by rising ARPOBs and aggressive capacity expansion. But not all growth is equal — newer facilities face occupancy drag, and high ARPOB models risk regulatory pushback. Investors should favour hospitals with simpler, efficient formats, disciplined capex, and a focus on brownfield expansion. In this market, the best returns may come from hospitals that prioritise execution over empire-building.