Healthcare Global Enterprises Ltd. share price target

HealthCare Global Enterprises (HCG IN) Management Meet Update Structural levers to drive growth BUY

HealthCare Global Enterprises’ (HCG) Q1FY27 revenue growth (+13.4% YoY) was in line with our expectations; however, a hit of INR 70mn from the new North Bangalore facility (56 beds) impacted profitability.

About the stock: HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under a single corporate entity. The company is pioneer in introducing technological advancements in cancer...

About the stock: HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under a single corporate entity. The company is pioneer in introducing technological advancements in cancer treatments such as Linear accelerators, Radiation machine, CyberKnife, Digital PET, Robotics among others. It also operates fertility treatment centre chain Milan which offers seven fertility centres in India....

We maintain our BUY rating on the stock.

We retain our BUY rating on the stock with a target price of Rs 850/share, implying an upside potential of 19% from the CMP.

HCG is well-positioned to deliver strong revenue growth over the next 23 years, driven by improving ARPOB and continued bed additions. However, profitability recovery is expected to be gradual due to the debt-funded nature of recent capital expenditure. The management's plan for a capital infusion is likely to ease the interest burden. With KKR as the new promoter, the company is set for a transformative phase that should enhance growth and operational efficiency. We, therefore upgrade our rating to Accumulate with...

We maintain our BUY recommendation on the stock.

BUY with a target price of Rs 702 implying an upside of 10% from the CMP

HCG is poised to deliver strong top-line growth over the next 23 years, supported by improvements in ARPOB and ongoing bed additions. However, profitability recovery may be gradual given the debt-funded nature of recent capex. Management has indicated plans for a capital infusion, which could help ease the interest burden. With KKR as the new promoter, the business is expected to undergo transformation, enhancing growth and operational efficiencies. Considering the elevated debt levels, we retain our Hold...

HealthCare Global Enterprises’ (HCG) Q1FY26 result was in line with our expectations. Revenue grew 16.7% YoY driven by new centres in Mumbai (+28% YoY), Kolkata (+17% YoY) and Ahmedabad (+22% YoY) while key cluster of Karnataka and East India grew at a moderate pace.

We maintain our BUY recommendation on the stock.

We recommend a BUY with TP of Rs 600, implying an upside of 10% from the CMP.

We maintain our BUY recommendation on the stock.

HealthCare Global Enterprises' (HCG) Q4 consolidated EBITDA grew by 15% YoY to Rs1.1bn; in line with our estimate. The company's asset-light approach with a focus on partnerships has made its business model more capital efficient and scalable, in our view. We believe the strategic investment by KKR will bring in more operational and financial efficiency. Currently, HCG enjoys 13-14% pre IND AS margin, which is lower than its peers. We expect KKR to drive growth through bed expansion, rationalization of existing assets and scale up of...

We maintain our BUY recommendation on the stock.

With 51% stake in HCG, KKR has become the largest shareholder. We believe the strategic investment by KKR will bring in more operational and financial efficiency. Currently, HCG enjoys 15% pre IND AS margin, which is lower than its peers. We expect KKR to drive growth through bed expansion, rationalization of existing assets and scale up of margins. The company's asset-light approach with a focus on partnerships has made its business model more capital efficient and scalable, in our view. Our FY26/FY27E EBITDA stands...

HealthCare Global Enterprises’ (HCG) current promoter CVC Capital (Aseco PTE) is likely to sell up to 54% of its stake in the company to another private equity (PE) firm, KKR, at an agreed price of INR 445/share (cumulative value between INR 320bn–339bn).