Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

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Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

HealthCare Global Enterprises / Equity Bottom-Up

<ul>
<li>HCG reported a strong Q2FY4 with revenue growth of 16% YoY and 5.7% QoQ. EBITDA margin expanded 120bp QoQ to reach 17.8%.</li>
<li>Emerging centers are scaling up well with revenue growing at 29% YoY in Q2FY24. Matured centers' revenue also grew at a healthy pace of 13% YoY.</li>
<li>HCG is continuing to upgrade infrastructure of existing hospitals. It added 3 robotic surgery machines across 3 centers. It operationalized 4 new LINACs and plans to install six more LINACs. </li>
</ul>


HCG reported a strong Q2FY4 with revenue growth of 16% YoY and 5.7% QoQ. EBITDA margin expanded 120bp QoQ to reach 17.8%.
Emerging centers are scaling up well with revenue growing at 29% YoY in Q2FY24. Matured centers' revenue also grew at a healthy pace of 13% YoY.
HCG is continuing to upgrade infrastructure of existing hospitals. It added 3 robotic surgery machines across 3 centers. It operationalized 4 new LINACs and plans to install six more LINACs. 


HCG: Scaling Up Well | On Track for a Solid FY25

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Healthcare Global Enterprises (HCG) reported revenue of Rs 487 Cr, up 15.9% YoY, which stood above our expectations.</li><li>Growth was primarily driven by ARPOB improvement to Rs 42,000, up 13.9% YoY.</li><li>The number of occupied bed days increased 1.1% YoY as occupancy improved by 100bps to 66.4% YoY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthcare Global Enterprises (HCG) reported revenue of Rs 487 Cr, up 15.9% YoY, which stood above our expectations.Growth was primarily driven by ARPOB improvement to Rs 42,000, up 13.9% YoY.The number of occupied bed days increased 1.1% YoY as occupancy improved by 100bps to 66.4% YoY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthcare Global Enterprises Ltd - Margins Still Below Industry Levels; ARPOB Improves

<ul>
<li>HCG's cancer segment reported decent revenue growth of 14% YoY in Q1FY24. EBITDA margin came in weaker than expected due to a few transient adverse factors.</li>
<li>HCG is hitting all the right notes to drive growth. It is beefing up clinical talent to attract patients. It is also making strategic tuck-in acquisitions to expand its presence.  </li>
<li>As cancer treatment is becoming more advanced, the mix of immunotherapy and hi-tech treatment is growing, helping the realization and the profitability to improve.</li>
</ul>


HCG's cancer segment reported decent revenue growth of 14% YoY in Q1FY24. EBITDA margin came in weaker than expected due to a few transient adverse factors.
HCG is hitting all the right notes to drive growth. It is beefing up clinical talent to attract patients. It is also making strategic tuck-in acquisitions to expand its presence.  
As cancer treatment is becoming more advanced, the mix of immunotherapy and hi-tech treatment is growing, helping the realization and the profitability to improve.


HCG: Hitting All The Right Notes To Scale Up

<ul><li>Healthcare Global Enterprises (HCG) reported revenue of Rs 461 Cr, up 12.9% YoY, in line with our expectations.</li><li>Growth was primarily driven by ARPOB improvement to Rs 39,686, up 3.2% YoY.</li><li>The number of occupied bed days increased 4.6% YoY as occupancy improved by 230bps to 66.9%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthcare Global Enterprises (HCG) reported revenue of Rs 461 Cr, up 12.9% YoY, in line with our expectations.Growth was primarily driven by ARPOB improvement to Rs 39,686, up 3.2% YoY.The number of occupied bed days increased 4.6% YoY as occupancy improved by 230bps to 66.9%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthcare Global Enterprises Ltd - Margins Still Below Industry Levels

Global Healthcare Analyst

Tina Banerjee

Rainbow Children's Medicare / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rainbow-children-s-medicare-limited" target="_blank" data-smartkarma-citation="entities:35874:1" rel="noopener">Rainbow Children's Hospital (RAINBOW IN)</a> recorded 21% YoY revenue growth in Q1FY24 to INR2.9B, driven by increase in pediatric surgical cases and deliveries, and addition of new bed capacities.</li>
<li>Lower occupancies in new hospitals and higher expenses impacted profitability. In Q1FY24, EBITDA margin declined 407 bps YoY to 30.5%, while net profit margin contracted 190 bps YoY to 14.4%.</li>
<li>The company will add 270 beds in the current financial year. By FY27, RCML aims to increase its bed capacity by 56% to 2,585 from current bed capacity of 1,655.  </li>
</ul>



Rainbow Children's Hospital (RAINBOW IN) recorded 21% YoY revenue growth in Q1FY24 to INR2.9B, driven by increase in pediatric surgical cases and deliveries, and addition of new bed capacities.
Lower occupancies in new hospitals and higher expenses impacted profitability. In Q1FY24, EBITDA margin declined 407 bps YoY to 30.5%, while net profit margin contracted 190 bps YoY to 14.4%.
The company will add 270 beds in the current financial year. By FY27, RCML aims to increase its bed capacity by 56% to 2,585 from current bed capacity of 1,655.  


Rainbow Children's Hospital (RAINBOW IN): Started FY24 On Strong Note; Capacity Expansions Underway

India

HealthCare Global Enterprises Limited provides medical and surgical hospital services. The Hospital offers cancer care, chemotherapy, cyberknife surgery, surgical, radiation, and medical oncology services. HealthCare Global Enterprises operates worldwide.

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HealthCare Global Enterprises (HCG IN)

HCG: Scaling Up Well | On Track for a Solid FY25

HCG continues to scale up well. At the current valuation, an investment in HCG offers attractive upside potential of 70%+ over a holding period of...

Ankit Agrawal, CFA

Healthcare Global Enterprises Ltd - Margins Still Below Industry Levels; ARPOB Improves

Healthcare Global Enterprises (HCG) reported revenue of Rs 487 Cr, up 15.9% YoY, which stood above our expectations. Growth was primarily driven by...

Axis Direct

HCG: Hitting All The Right Notes To Scale Up

HCG offers an upside potential of 60%+ over the next couple of years, as the business scales up. With cancer treatment becoming more complex, HCG's...

Ankit Agrawal, CFA

Healthcare Global Enterprises Ltd - Margins Still Below Industry Levels

Healthcare Global Enterprises (HCG) reported revenue of Rs 461 Cr, up 12.9% YoY, in line with our expectations. Growth was primarily driven by...

Axis Direct

Rainbow Children's Hospital (RAINBOW IN): Started FY24 On Strong Note; Capacity Expansions Underway

Rainbow recorded an impressive 21% YoY revenue growth to INR2.9B in Q1FY24, driven by increase in pediatric surgical cases and deliveries. The...

Tina Banerjee

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