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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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

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 Rs 358 Cr grew by 30.7% YoY which is in line with expectations.</li><li>This growth is primarily led by healthy ARPOB (Rs 38,320) that has shown growth of 15.8% YoY and the number of occupied bed days grew by 17% YoY</li><li>We recommend “BUY” with a target price of Rs 330.</li></ul><div class="content-highlight"><em>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.</em></div>

Healthcare Global Enterprises (HCG) reported revenue Rs 358 Cr grew by 30.7% YoY which is in line with expectations.This growth is primarily led by healthy ARPOB (Rs 38,320) that has shown growth of 15.8% YoY and the number of occupied bed days grew by 17% YoYWe recommend “BUY” with a target price of Rs 330.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: High-End Work Improves Realisations

<ul><li>We initiate coverage on HealthCare Global Enterprises Ltd (HCG) with a BUY rating and a target price of Rs 330, implying an upside potential of 32% from the current levels.</li><li>Oncology opportunity growing faster than the Healthcare market Oncology, with a 13% CAGR over FY16-19, is the fastest growing industry in the Healthcare market</li><li>HCG is expected to turn around its operating profitability with Operating EBITDA Margins improving by 680bps over FY21-FY24E</li></ul><div class="content-highlight"><em>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.</em></div>

We initiate coverage on HealthCare Global Enterprises Ltd (HCG) with a BUY rating and a target price of Rs 330, implying an upside potential of 32% from the current levels.Oncology opportunity growing faster than the Healthcare market Oncology, with a 13% CAGR over FY16-19, is the fastest growing industry in the Healthcare marketHCG is expected to turn around its operating profitability with Operating EBITDA Margins improving by 680bps over FY21-FY24EContent 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.

Health.Global: Leadership in Speciality Healthcare; Operating Profitability Turning Around

<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.

India

HealthCare Global Enterprises is a leading healthcare provider in India, specializing in comprehensive cancer diagnosis and treatment, including medical oncology, radiation therapy, and surgical oncology. The company also offers fertility treatments under the Milann brand, advanced screening and diagnostic services, and multi-specialty hospital care. It was founded in 1989 (initially as Bangalore Institute of Oncology) and is headquartered in Bangalore, India.

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HealthCare Global Enterprises (HCG IN)

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

HealthCare Global: High-End Work Improves Realisations

Healthcare Global Enterprises (HCG) reported revenue Rs 358 Cr grew by 30.7% YoY which is in line with expectations. We recommend BUY with a target...

Axis Direct

Health.Global: Leadership in Speciality Healthcare; Operating Profitability Turning Around

We initiate coverage on HealthCare Global Enterprises Ltd (HCG) with a BUY rating and a target price of Rs 330 (EV/EBITDA 15x for FY24E EBITDA),...

Axis Direct

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

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