HealthCare Global Enterprises: Prabhudas Lilladher Issues Bullish Recommendation with a Price Target of Rs 820

HealthCare Global Enterprises Reports Strong Q4 EBITDA Growth

HealthCare Global Enterprises (HCG) has announced its Q4 consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) results, showing a significant growth of 18% year-over-year (YoY) to INR 1.25 billion. This performance aligns with the estimates of Prabhudas Lilladher's research report.

The company's asset-light approach, focusing on partnerships, has made its business model more capital efficient and scalable. A recent strategic investment by KKR (Kohlberg Kravis Roberts) is expected to bring in more operational and financial efficiency. Additionally, the exit from the low-margin fertility business is anticipated to have a positive impact on HCG's overall performance. Currently, the company enjoys a pre-IND-AS margin of approximately 14%, which is lower than its peers.

Outlook and Recommendations

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Prabhudas Lilladher expects HCG to achieve a compound annual growth rate (CAGR) of approximately 23% in EBITDA over the fiscal years 2026-2028. At the current market price (CMP), the stock trades at attractive valuations of 19x EV/EBITDA (Enterprise Value to EBITDA), adjusted for rentals and minority interests. Given this analysis, the research firm recommends a 'BUY' rating for HCG with a target price of Rs820 per share, valuing the company at 22x FY28E EV/EBITDA.

Note: The table presents the expected EBITDA CAGR and EV/EBITDA valuation for HCG over the fiscal years 2026-2028, as mentioned in the research report.