Home » Research » Kotak Research Center » Reduce Hcg Target Price Rs290
How it helps?
  • Zero maintenance charges
  • Zero fees for demat account opening
  • Volume based brokerage
Reach Us
Learn the art of Investing

Read More >

  • Stock recommendation: HealthCare Global — Reduce — Target price Rs 290

    Publish date: August 13, 2018

    Results update: Weakness in fertility business drives miss

    HealthCare Global (HCG) was off the mark in the earnings department owing to a lackluster fertility business. The cancer care providers also saw its net debt levels increase as it continues to expand the fertility business through its Milann brand.

    Key highlights

    • HCG’s EBITDA and revenue growth were impacted by a 5% revenue slump in its Milann business (fertility business). While the EBITDA of Rs 306 million missed our estimate by 7%, the revenue growth was 2% below our estimate.
    • The Milann suffered a setback due to non-availability of a key doctor in their Bengaluru centre.
    • Its oncology business did well by growing at 21% (YoY), while mature centers grew 12% (YoY).
    • Even as net debt has increased to Rs 5 billion in quarter ended June, HCG has sounded out plans to expand its presence in Jaipur (50 beds), Kolkata (50 beds) and Mumbai (32 beds).

    Valuation & outlook

    We reckon the fertility and oncology businesses have built a good base for the future, but the aggressive expansion plans has given HCG very little wriggle room due to high debt levels.

    Also read


    Don't have an account? Click here to open an account

    Click here to go back