HealthCare Global Q4 Results Review - Looking To Add Capacity In Core Markets: ICICI Securities

ICICI Securities Report

HealthCare Global Enterprises Ltd.’s Q4 FY24 revenue growth of 12% YoY to Rs 4.9 billion was driven by its emerging centre (up 15% YoY), while established centres grew 11% YoY. Ebitda margin touched 18.6% (up 140 bps QoQ) driven by superior payer mix and curbing losses of new hospitals in Kolkata and South Mumbai.

Average occupancy inched up 410 bps QoQ to 63.9% in Q4 FY24. HCG is on course to shift operations to a larger 200 bed hospital in Ahmedabad in Q2 FY25.

Besides, it will add 125 beds in two hospitals in Bengaluru in FY26.

The management aims to add 350-400 more beds in existing hospitals which will likely boost organic growth over the next three-four years. We raise FY25-26E Ebitda by 2-3% to factor in better traction in emerging centres. Maintain Add, with target price of Rs 390 based on 15 times FY26E enterprise value/Ebitda.

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