Healthcare Global Enterprises Ltd - Stock Valuation and Financial Performance

BSE: 539787 | NSE: HCG | Hospital & Healthcare Services | Small Cap

HealthcareGlobal Share Price

490.55 -12.95 -2.57%
as on 03-Mar'25 16:59

DeciZen - make an informed investing decision on HealthcareGlobal

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Healthcare Global Enterprises stock performance -

P/E Ratio (SA):
0.00
Market Cap:
6,839 Cr.
52-wk low:
310.1
52-wk high:
563.2

Is Healthcare Global Enterprises Ltd an attractive stock to invest in?

1. Is Healthcare Global Enterprises Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Healthcare Global Enterprises Ltd is a average quality company.

2. Is Healthcare Global Enterprises Ltd undervalued or overvalued?

The key valuation ratios of Healthcare Global Enterprises Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Healthcare Global Enterprises Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Healthcare Global Enterprises Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HealthcareGlobal:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Healthcare Global Enterprises Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 4.4%4%6.1%7.7%6.1%1.6%-12.6%10.5%8%7.2%-
Value Creation
Index
-0.7-0.7-0.6-0.5-0.6-0.9-1.9-0.3-0.4-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4204715455866416886098501,0061,0991,192
Sales YoY Gr.-12.1%15.7%7.6%9.3%7.5%-11.6%39.6%18.3%9.3%-
Adj EPS 0.1-0.22.320.8-6.1-15.3-3.72.92.4-0.8
YoY Gr.--520%NA-11.1%-61%-883.3%NANANA-18.4%-
BVPS (₹) 38.26163.569.672.768.569.778.581.584.184.9
Adj Net
Profit
0.4-1.819.317.46.9-54.2-192-51.340.733.3-11
Cash Flow from Ops. 50.557.853.966.48786.370.9124130195-
Debt/CF from Ops. 6.23.4444.95.73.40.90.92-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.3%11.4%21.8%9.3%
Adj EPS 53.7%25.1%NA-18.4%
BVPS9.2%3%6.5%3.2%
Share Price - 34.2% 25.8% 42.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
0.1-0.53.62.91.1-8.6-24.9-5.13.62.9-1
Op. Profit
Mgn %
13.513.615.21414.716.812.117.316.917.917.2
Net Profit
Mgn %
0.1-0.43.531.1-7.9-31.5-64.13-1
Debt to
Equity
1.20.40.40.40.70.80.30.10.10.3-
Working Cap
Days
12912813016121124025715012414183
Cash Conv.
Cycle
-9-18-16-310223826262321

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 21.77%

Return on Equity is Poor

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 8.52%

Latest Financials - Healthcare Global Enterprises Ltd.

Standalone Consolidated
TTM EPS (₹) -0.8 4.2
TTM Sales (₹ Cr.) 1,192 2,131
BVPS (₹.) 84.9 62.3
Reserves (₹ Cr.) 1,022 729
P/BV 5.78 7.87
PE 0.00 117.29
From the Market
52 Week Low / High (₹) 310.10 / 563.15
All Time Low / High (₹) 62.95 / 563.15
Market Cap (₹ Cr.) 6,839
Equity (₹ Cr.) 139.4
Face Value (₹) 10
Industry PE 37.9

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Sales (₹ Cr.) 280 8.4294 7.9306 8.5313 9.3
Adj EPS (₹) 0.7 51.10.8 -14.31.2 17.4-0.9 -250
Op. Profit Mgn % 19.56 410 bps16.99 -47 bps18.97 109 bps13.54 -352 bps
Net Profit Mgn % 3.39 96 bps3.99 -104 bps5.23 38 bps-4.15 -718 bps

Management X-Ray of HealthcareGlobal:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:71.23%Institutions:15.71%Non-Institutions:13.06%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%20%40%60%80%
Pledged *3.093.093.093.093.090.003.093.093.093.09
* Pledged shares as % of Promoter's holding (%)

Valuation of HealthcareGlobal

MRP
spaceLock icon
MOS
spaceLock icon%
DP
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Base EPS
spaceLock icon
DPS
spaceLock icon
MRP: ₹ 0
DP: ₹0
Base EPS ₹:
DPS ₹:
MOS (%):
Expected EPS Growth Rate:
0%
Base 0%
50%
Expected Rate of Return:
0%
Base 0%
50%
Future PE:
0
Base 0
200
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

Healthcare Global: Q1FY24 Result Update - 12 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

461

+13%

Driven by increase in ARPOB

EBITDA

74

+3%

 

EBITDA Margin

16%

-155 bps

On account of increase in employee cost

PAT

3.65

+47%

 

Good result on all parameters, sustaining performance with healthy focus on capacity expansion.

 

Initiating Coverage: Healthcare Global Enterprises - 16 Feb 2023

About the company

Healthcare Global Enterprises Ltd. is a provider of speciality healthcare services in India focused on cancer and fertility. Under the “HCG” brand, it operates the largest cancer care network in India in terms of the total number of private cancer treatment centres licensed by the AERB. Under the “Milann” brand, it operates its fertility centres. It also operates 4 multi-specialty hospitals in Ahmedabad, Rajkot, Bhavnagar and Hubli. It provides clinical reference laboratory services in India under the Triesta brand with a specialisation in oncology, including molecular diagnostic services and genomic testing. Additionally, Triesta offers research and development services to pharmaceutical and biotechnology companies in the areas of clinical trial management and biomarker discovery and validation.

 

Industry Overview

Based on the World Health Organization's World Cancer Report, it was estimated that India had approximately 1.16 million new cases of cancer in 2018. The report also suggested that one out of every 10 Indians will develop cancer in their lifetime, and one out of every 15 will succumb to the disease, making cancer the second leading cause of death in the country.

Over the past two decades, India has experienced impressive economic growth, with an annual expansion of more than 7% in most years, making it one of the world's top-performing emerging economies. This economic development has led to a range of socio-economic changes, including an increased risk of non-communicable diseases such as cancer, and significant disparities in access to cancer prevention and control services. According to the same WHO report, global cancer rates could increase by 60% in the next two decades if cancer care is not improved in low and middle-income countries.

As per the UN, the fertility rate of Indians has declined significantly by more than 50% from 4.97 to 2.23 and is further expected to decline to 2.1 by CY 2025-30 and to 1.86 by CY 2045-50. But the fertility rate of 2.2 is generally considered as the fertility replacement level. If the fertility rate goes below this number the population rate will definitely decline.

Sedentary lifestyles with minimum physical activity, rising stress level and irregular sleep pattern are few of the reasons that are causing infertility, thus forcing them to opt for artificial ways of conceiving. Infertility at present, affects about 10% to 14% of the Indian population, with higher rates in urban areas where one out of six couples is impacted, according to the Indian Society of Assisted Reproduction. About 27.5 million couples are known to actively trying to conceive suffer from infertility in the country.

 

Key Business Parameters

 

Leverage has been an issue with HCGEL in the past as it took recourse to debt to fund its capex expansion drive in recent years. Debt-Equity ratio (Ex IND AS116) is expected to come down significantly from 1.88 in FY20 to 0.13 in FY23 given the fund infusion by CVC, reduction of losses and minimal capex between FY21 and FY23. A strong balance sheet would keep HCGEL in good stead and support a higher valuation multiple.

HCGEL was on a capex overdrive between FY18 and FY20 when Rs 2662 mln, Rs 2199 mln and Rs 2141 mln were added to its gross tangible assets block in FY18, FY19 and FY20 respectively. Nine new comprehensive cancer care centres were added between FY16 and FY20 which led to the decline in EBITDA margin and RoCE. HCGEL’s new centre losses increased to Rs 455 mln in FY20 from around Rs 70 mln in FY17. While it took about ~1.0-1.5 years for the new centres to breakeven, Borivali and Nagpur centres’ breakeven was delayed owing to doctor and rent-related issues. With the commissioning of the South Mumbai centre in Q3FY20, HCGEL is done with its major capex plan barring small amounts related to its Gurgaon comprehensive cancer care centre. Thus, we expect improvement in EBITDA for the projected years FY21 to FY23. Further, incremental depreciation charge would also be low and recourse to additional debt to fund the expansion would not be necessary at all. All these would culminate to positive return ratios in FY23 and support a higher valuation multiple.

 

Management Team

CVC Capital Partners (Promoter and Member of Board) -  Stakes in more than 50 companies worldwide, employing ~3 lakh people and generating annual sales of over $100 Bn. 34+ years of proven record of Private Equity investment success. Marquee investments in Healthcare services including P T Siloam (Indonesia), Affinity Health (Australia), Metropolitan Hospital (Greece), and General Healthcare Group (UK).

Mr. B.S. Ajaikumar (Promoter and Executive Chairman) - MBBS from St. Johns & Radiation/Medical oncologist from MD Anderson. Over 40 years of experience in practising oncology in India and the US. Successfully raised capital and provided exits to marquee PE investors and led the public listing of HCG.

Mr. Raj Gore (CEO) - He has 21 years of diverse experience in business management in North America, Asia, and Africa, with a focus on Healthcare for the past 17 years. In his previous role, he was the Chief Executive Officer – Southern Region of Apollo Hospitals Enterprise Limited. Before joining Apollo, he worked with Fortis Healthcare Limited as Chief Growth Officer (India) & Chief Operating Officer – NCR.

 

 

Key Ratios of HealthcareGlobal

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
Narayana Hrudayalay 1,615.4 171 (11.8%) Small Cap 5,018 38.4 15.7 42.1 9.7
Aster DM Healthcare 394.1 -8.6 (-2.1%) Small Cap 3,699 105.6 5.5 3.7 5.6
Dr. Lal Pathlabs 2,347.8 38.1 (1.7%) Small Cap 1,967 55.3 19.5 42.5 9
Indraprastha Medical 342.3 -15.3 (-4.3%) Small Cap 1,245 16.5 10 20.8 5.6
RainbowChildrenS Med 1,245.8 2.6 (0.2%) Small Cap 1,237 23 17.4 54.2 8.8
Krishna Inst.Medi 519.9 -0.6 (-0.1%) Small Cap 1,222 6.4 19.3 80.8 10
Kovai Medical Center 4,979.5 -396.2 (-7.4%) Small Cap 1,220 188.7 14.8 26.4 5.3
Metropolis Health. 1,564.1 -22.7 (-1.4%) Small Cap 1,208 29.7 11 52.7 6.6
HealthcareGlobal 490.6 -13 (-2.6%) Small Cap 1,099 -0.8 3 - 5.8
Jupiter Life Line 1,443.6 5.3 (0.4%) Small Cap 911 28 16.7 51.6 6.9
Shows rows:

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4204715455866406886098501,0061,099
Operating Expenses 364407462504546573535703837903
Manufacturing Costs120141158159192215196241273296
Material Costs131134149155153147138210236246
Employee Cost 698598116130143137157175197
Other Costs 4348577571696595153164
Operating Profit 566483829411673147169196
Operating Profit Margin (%) 13.4%13.5%15.2%13.9%14.7%16.8%12.1%17.3%16.8%17.9%
Other Income 43723131224122217
Interest 32341627488363434148
Depreciation 33374444477987888994
Exceptional Items -4-4030-31-15353-3-16
Profit Before Tax -8-9293713-65-205815855
Tax -5-410125-12-14431721
Profit After Tax -2-519257-53-192384034
PAT Margin (%) -0.6%-1.0%3.6%4.2%1.1%-7.7%-31.5%4.5%4.0%3.1%
Adjusted EPS (₹)-0.3-0.62.32.90.8-6.0-15.32.82.92.4
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 2675195446056396078731,0911,1331,171
Share Capital 708586878889125139139139
Reserves 1974344585185515197489529941,032
Minority Interest0000000000
Debt27716016521939641921483113362
Long Term Debt24712312421734631514782113261
Short Term Debt2937412501046710101
Trade Payables7597105114106998196109132
Others Liabilities 706096165259628379374375523
Total Liabilities 6898369101,1031,4001,7541,5471,6441,7302,188

Fixed Assets

Gross Block5664675115916931,1411,0581,1771,2751,510
Accumulated Depreciation162366999146227313403487572
Net Fixed Assets405431442492547914745774788938
CWIP 2829337910444285936
Investments 84155141219299316366439475506
Inventories13111517161312172121
Trade Receivables6469101126146152147160212204
Cash Equivalents 135075159151412080237
Others Assets8391103155280300235129144244
Total Assets 6898369101,1031,4001,7541,5471,6441,7302,188

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 51585466878671124130195
PBT -8-9293713-65-205815855
Adjustment 647457609119228579150168
Changes in Working Capital -5-0-25-3210-20-49-21-605
Tax Paid 0-8-71-26-2040-15-17-33
Cash Flow From Investing Activity -74-86-73-185-208-116-24649-138-249
Capex -67-90-40-104-123-80-23-42-95-124
Net Investments -5-3220-154-102189-10-46
Others -27-35-100-70-40-120-99-32-79
Cash Flow From Financing Activity 22120-149166-3236-41-42105
Net Proceeds from Shares 1027173502045313212
Net Proceeds from Borrowing 29-110-97910636-219-6714174
Interest Paid -28-33-12-23-40-66-59-43-36-46
Dividend Paid 0000000000
Others 12-8000762-63-21-25
Net Cash Flow -192-33-27-55-3261132-4951
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)-0.9-1.23.674.331.16-8.55-25.873.93.612.95
ROCE (%)4.423.986.127.656.131.62-12.5510.468.027.21
Asset Turnover Ratio0.640.620.620.580.510.440.370.530.60.56
PAT to CFO Conversion(x)N/AN/A2.842.6412.43N/AN/A3.263.255.74
Working Capital Days
Receivable Days50525771777990666869
Inventory Days1099101087677
Payable Days189235248259263256238154159179

Healthcare Global Enterprises Ltd Stock News

Healthcare Global Enterprises Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HealthcareGlobal on 03-Mar-2025 16:59 is ₹490.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 03-Mar-2025 16:59 the market cap of HealthcareGlobal stood at ₹6,839.
The latest P/E ratio of HealthcareGlobal as of 03-Mar-2025 16:59 is 0.00.
The latest P/B ratio of HealthcareGlobal as of 03-Mar-2025 16:59 is 5.78.
The 52-week high of HealthcareGlobal is ₹563.1 and the 52-week low is ₹310.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HealthcareGlobal is ₹1,192 ( Cr.) .

About Healthcare Global Enterprises Ltd

Healthcare Global Enterprises was originally incorporated as Curie Centre of Oncology Private Limited on March 12, 1998 at Bengaluru, Karnataka, India as a private limited company under the Companies Act, 1956. The name of the company was subsequently changed to HealthCare Global Enterprises Private Limited and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on November 14, 2005. The company was converted into a public limited company pursuant to a special resolution passed by its Shareholders at the extraordinary general meeting held on May 20, 2006 and the name of the company was changed to HealthCare Global Enterprises Limited. A fresh certificate of incorporation consequent upon conversion to a public limited company was issued by the RoC on July 5, 2006.

The company is a provider of speciality healthcare services in India focused on cancer and fertility. Under the “HCG” brand, it operates the largest cancer care network in India in terms of the total number of private cancer treatment centres licensed by the AERB . Under the “Milann” brand, it operates its fertility centres.

The company’s HCG network operates on a “hub and spoke” model, wherein its HCG centre of excellence in Bengaluru serves as a “hub” to its other cancer centres. Its centre of excellence provides its other centres access to centralised quality control and assurance services; establishes treatment protocols that are adhered to across its HCG network; provides centralised treatment planning and tele-radiology services to help with diagnosis and treatment; conducts weekly central tumour board meetings to review complex cases; and also gives its HCG network access to advanced technologies, such as WBRRS and specialised procedures such as liver transplants and stem cell therapies. This model allows HCG network of cancer centres to leverage the expertise and capabilities of its centre of excellence, which when combined with the diagnostic and treatment facilities at its cancer centres, allows it to deliver quality cancer care to patients across India in a seamless manner.

The company follows a multidisciplinary approach to cancer care across its HCG network, wherein specialist physicians from various disciplines collaborate to provide the best course of treatment for each patient. This allows it to share and develop best practices, build clinical expertise and adopt standardised protocols for diagnosis and treatment, thereby improving the quality of its cancer care services. As a result, the company is able to better serve its patients and ensure consistent clinical outcomes.

Given the large number of patient cases treated across its HCG network, the company is able to efficiently utilise its equipment, technologies and human resources, thereby deriving economies of scale. Furthermore, through the adoption of a centralised drug and consumables formulary, it is able to lower the overall cost of drugs and consumables. Its business model is scalable and when combined with efficient utilisation of resources, it enables it to operate within a competitive cost structure.

Business area of the company

The company is Bangalore based provider of speciality healthcare in India focused on cancer and fertility. It operates the largest cancer care network in India in terms of the total number of private cancer treatment centres licensed. It also operates fertility centres under the ‘Milann’ brand.

Major events and milestones

  • 2005: Entered into the clinical laboratory business through acquisition of Triesta Sciences Inc. and Triesta Sciences (India) Private Limited.
  • 2006: India Development Fund made its first investment of Rs 500 million in the company,
  • 2006: BMORCL became its subsidiary.
  • 2007: HCG Medi-Surge became its subsidiary.
  • 2007: Evolvence made its first investment of Rs 225 million in the company,
  • 2008: NTICPL made its first investment of Rs 400 million in the company.
  • 2009: Amalgamation of Triesta Sciences (India) Private Limited and Triesta Sciences Inc. with the company.
  • 2010: IL&FS Trust Company Limited a/c MPEF, through its scheme India Build Out Fund I and MAT made its first investment of Rs 312 million in the company.
  • 2011: Amalgamation of BMORCL with the company.
  • 2011: PIOF became a Shareholder by purchasing shares from NTICPL.
  • 2013: V-Sciences made its first investment of Rs 600 million in the company.
  • 2013: Entered into the fertility business through acquisition of 50.10% stake in BACC Healthcare.
  • 2014: Demerger of multispecialty division from HCG Medi-Surge and vesting of the same with the company.
  • 2015: HCG Regency became its subsidiary.
  • 2015: Amalgamation of HCG Vijay with the company.

Awards and accreditations

  • 2010: The company received the ‘Oncology Leader of the Year’ award from Frost and Sullivan.
  • 2011: The company and its Triesta Reference Laboratory received CAP accreditation valid up to August 25, 2015.
  • 2011: The company received the ‘Oncology Leader of the Year’ award from Frost and Sullivan.
  • 2012: HCG cancer centre at Bengaluru received NABH accreditation valid up to May 11, 2018.
  • 2013: The company received the ‘Best Place to Work in Indian Healthcare’ award from People Strong and HOSMAC.
  • 2013: HMS, Ahmedabad received NABH accreditation valid up to June 22, 2016.
  • 2013: Triesta Reference Laboratory received accreditation from the National Accreditation Board for Testing and Caliberation Laboratories for its facilities at HCG Tower, Bengaluru in the field of medical testing valid up to October 13, 2015.
  • 2013: The company was designated an ESMO Designated Centre of Integrated Oncology and Palliative Care.
  • 2013: The company received the ‘Most Innovative Single Specialty Healthcare Entity’ award from VC Circle.
  • 2014: The company received the ‘Golden Peacock Award for Innovation in Management’ from the Institute of Directors.
  • 2014: Its pathology laboratory at HMS received ISO 9001 certification valid up to August 30, 2017.
  • 2015: The company received recognition from the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India for its in-house research and development wing at HCG Tower, Bengaluru.

 

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