Healthcare Global Enterprises Ltd. share price target

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

Oncology is the fastest-growing industry in the healthcare market with a CAGR of 13.5% during FY22-FY27E. Recommendation: BUY

Oncology is the fastest-growing industry in the healthcare market with a CAGR of 13.5% during FY22-FY27E. We have BUY on the stock

HCG’s Q1FY24 revenue growth of 4.3% QoQ was mainly driven by day care services. Installation of 5 LINACs (under pay for use model) led to a dip in radiation oncology services impacting revenue and gross margins. Four of the five new LINACs are operational and the management expects to restore its EBITDA margin by the end of Q4FY24, while it may add a few more LINACs in FY25.

Company Outlook & Guidance: Oncology is the fastest-growing industry in the healthcare market with a CAGR of 13.5% during FY22-FY27E. HCG is expected to outpace the industry growth and register a CAGR of 15% during FY23-FY26E due to its strong leadership position in the industry.

HealthCare Global Enterprises’ (HCG) Q4FY23 performance was in line with expectations. Traction was driven by mature centres though incremental revenue in new centres is not improving profitability in a meaningful way.

We maintain BUY on Stock

HealthCare Global Enterprises’ (HCG) Q3FY23 performance was in line on revenue front, but a miss on profitability. Revenue grew 18.6% YoY (+1.1% QoQ) to Rs4.2bn (I Sec: Rs4.3bn) driven by increased occupancy levels. EBITDA margin was up 50bps YoY and flat QoQ at 17.8%.