Healthcare Global Enterprises Ltd. share price target

We met HealthCare Global Enterprises’ (HCG) management – Dr. Ajai Kumar (Executive Chairman) and Ms. Anjali Ajaikumar Rossi (Executive Director) – to understand the company’s strategy, future prospects and industry drivers.

We initiate coverage on HealthCare Global Enterprises Ltd (HCG) with a BUY rating and a target price of Rs 330 (EV/EBITDA 15x for FY24E EBITDA), implying an upside potential of 32% from the current levels.

Healthcare Global Enterprises Ltd is one of India's leading oncology treatment specialists with presence across the country. HCG revenues in Q1FY22 grew by 68% YoY to Rs.323cr during the quarter supported by new centres reporting a revenue growth of 124% YoY and reduced losses with several centres achieving operating EBITDA breakeven at unit level. EBITDA continued its growth trajectory to Rs.51cr (180% YoY, 30% QoQ) while weathering the second wave of the pandemic. Resultantly...

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Healthcare Global Enterprises Ltd is one of India's leading oncology treatment specialists with presence across the country. HCG revenues in Q4FY21 grew by 10.6% YoY to Rs.298 cr during the quarter with good momentum across existing centres inspite of decline in international patients. Consolidated operating EBITDA was Rs. 34.9 cr, reporting a growth of 11.6% YoY, amidst COVID-led disruptions in the quarter. Milann Fertility Centre delivered positive growth on QoQ basis across...

HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under a single corporate entity. This consists of 22 comprehensive cancer centres that provide a single point destination for complete cancer care. Most centres are on a lease or rental basis with some in partnership with local doctors or hospitals. Owing to exclusive agreement with vendors, HCG procures equipment on a deferred payment basis. We expect revenues from cancer network to grow at 10% CAGR to | 1365 crore over FY20-23E on the back of a ramp up in new hospitals....

Healthcare Global Enterprises Ltd is one of India's leading oncology treatment specialists with presence across the country. Healthcare Global Enterprises operates one of the largest private sector cancer treatment centres in India with 22 cancer centres....

HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under single corporate entity. This consisted of 21 comprehensive cancer centres that provide a single point destination for complete cancer care. Most centres are on lease or rental basis with some in partnership with local doctors or hospitals. Owing to exclusive agreement with vendors, HCG procures equipment on a deferred payment basis. We expect revenues from the HCG centres to grow at 16.2% CAGR to...

ICICI Securities Ltd | Retail Equity Research We met the management of Healthcare Global Enterprises (HCG), a leading cancer care hospital chain, to understand its unique model of single speciality focus (cancer care) and its future plans. HCG was started by Dr BS Ajaikumar in 2005. The company initially established 10 cancer centres with private funding. Currently, it operates 24 HCG facilities (18 cancer centres, two multi-speciality hospitals, three diagnostics and oneday care chemotherapy centre). HCG owns 1364 beds and a team of 200+ oncologists (FY17). Currently, Karnataka, Gujarat regions comprise...

BUY Healthcare Global Enterprises at CMP Rs. 260 and add on dips to Rs. 260- 230 for the sequential targets of Rs. 305 & Rs. 348