Healthcare · HCG
Hospitals
from 733 today
Hollow marker shows the firm’s previous target.
Healthcare Global Enterprises delivered steady revenue and margin performance backed by strong patient volume growth, and is entering a highly margin-accretive phase driven by operating leverage, brownfield expansions, and an optimized payor mix.
Revenue grew 13% YoY to INR 6.9bn driven by patient volume and ARPP growth, while adjusted EBITDA grew 20% YoY with margin expanding 100bps.
HealthCare Global Enterprises’ Q1FY27 revenue growth was in line with expectations, driven by strong traction in the South and East regions, though profitability was impacted by the new North Bangalore facility. Management guides for an EBITDA margin expansion of 300-400bps in the next two years, and the target price is raised to INR 800.
HCG delivered an in-line performance in 1QFY27 with revenue growing 13% YoY, driven by patient volume and ARPP growth. We maintain our FY27E/FY28E EPS estimates and expect an EBITDA CAGR of 23% over FY26-29E, valuing HCG at 20x 1HFY29E EBITDA with a revised target price of INR 900 and a maintain BUY recommendation.
HealthCare Global Enterprises reported an in-line Q1 consolidated EBITDA growing 18% YoY, with growth momentum remaining intact and management reiterating higher EBITDA growth ahead. We recommend a BUY rating with a target price of Rs820/share, valuing the stock at 22x on FY28E EV/EBITDA.
We maintain our BUY recommendation on the stock with a revised target price of Rs 785, supported by steady revenue growth, improving margins, and expanding network operations.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
