Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Rainbow Children's Medicare / Equity Capital Markets

<ul>
<li>Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.</li>
<li>RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.</li>
<li>In this note, we will talk about the recent updates and peer comparison.</li>
</ul>


Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.
RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
In this note, we will talk about the recent updates and peer comparison.


Rainbow Children’s Hospital - Recent Updates and Peer Comp

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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Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

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 continues to improve its profitability led by 1) Scaling up of new centers and 2) Improving operational efficiency in its existing centers. </li>
<li>HCG reported revenue growth of 1.7% QoQ in Q3FY22, despite Q3 being a seasonally weak quarter and despite fell off of COVID related revenues.</li>
<li>As per our projections, HCG has potential to generate annual earnings of 170cr+ by FY25, suggesting an IRR potential of 23%+ over the next 3Y.  </li>
</ul>


HCG continues to improve its profitability led by 1) Scaling up of new centers and 2) Improving operational efficiency in its existing centers. 
HCG reported revenue growth of 1.7% QoQ in Q3FY22, despite Q3 being a seasonally weak quarter and despite fell off of COVID related revenues.
As per our projections, HCG has potential to generate annual earnings of 170cr+ by FY25, suggesting an IRR potential of 23%+ over the next 3Y.  


HCG: Sustained Improvement In Growth and Profitability

<ul>
<li>With new centers scaling up, HCG reported industry leading revenue growth (10% QoQ). With capex cycle behind us, HCG is poised to post strong profitability, cash flow and growth.</li>
<li>Over the past 3 quarters, HCG has been consistently reporting highest-ever revenue. Its Q2FY22 revenue is highest ever in its history, even with exclusion of COVID and vaccination revenues. </li>
<li>HCG also reported its highest ever EBITDA of INR 65cr, leading to positive PAT (excluding non-recurring gains) after a long hiatus of 13 quarters.</li>
</ul>


With new centers scaling up, HCG reported industry leading revenue growth (10% QoQ). With capex cycle behind us, HCG is poised to post strong profitability, cash flow and growth.
Over the past 3 quarters, HCG has been consistently reporting highest-ever revenue. Its Q2FY22 revenue is highest ever in its history, even with exclusion of COVID and vaccination revenues. 
HCG also reported its highest ever EBITDA of INR 65cr, leading to positive PAT (excluding non-recurring gains) after a long hiatus of 13 quarters.


HCG: On Track For Sustainable Growth and Profitability

<p><a href="https://www.smartkarma.com/entities/healthcare-global-enterprises-limited" target="_blank" data-smartkarma-citation="entities:23983:1" rel="noopener">HealthCare Global Enterprises (HCG IN)</a> announced yesterday night that it has sold off its 38.5% (34.5% on a fully diluted basis) stake in Strand Life Sciences ("Strand") to Reliance Strategic Business Ventures, a 100% subsidiary of <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a>. Strand is a genomics based research and diagnostics company.</p>

HealthCare Global Enterprises (HCG IN) announced yesterday night that it has sold off its 38.5% (34.5% on a fully diluted basis) stake in Strand Life Sciences ("Strand") to Reliance Strategic Business Ventures, a 100% subsidiary of Reliance Industries (RIL IN). Strand is a genomics based research and diagnostics company.

<p>Post equity infusion last year from CVC, a private equity player, HCG has been getting more and more disciplined in its capital allocation. In Q4FY21, it wrote-off investments related to most of its medium-term expansion plans and is now focusing solely on consolidating its existing operations, which in itself provides strong growth potential at high incremental ROC given that most of the capex is now behind us. Operational leverage from increased utilization of new centers should help boost margins.</p>

Post equity infusion last year from CVC, a private equity player, HCG has been getting more and more disciplined in its capital allocation. In Q4FY21, it wrote-off investments related to most of its medium-term expansion plans and is now focusing solely on consolidating its existing operations, which in itself provides strong growth potential at high incremental ROC given that most of the capex is now behind us. Operational leverage from increased utilization of new centers should help boost margins.

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)

Rainbow Children’s Hospital - Recent Updates and Peer Comp

Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO. In this note, we...

Sumeet Singh

HCG: Sustained Improvement In Growth and Profitability

An investment in HCG has potential to generate 23%+ CAGR over the next 3Y as the business scales up to utilize the full potential of its existing...

Ankit Agrawal, CFA

HCG: On Track For Sustainable Growth and Profitability

In line with our thesis, HCG is poised to post strong growth, profitability and cash flows as its new centers scale up. With capex cycle behind us...

Ankit Agrawal, CFA

HCG: Sale of Strand Business

HCG announced sale of its stake in Strand. At the same time, it also acquired Strand's specialty oncology diagnostics segment to continue its...

Ankit Agrawal, CFA

HCG: Getting Disciplined

Over last 1Y, HCG has restructured itself significantly to streamline its capital allocation and consolidate its existing operations. With capex...

Ankit Agrawal, CFA

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