Buy Healthcare Global Enterprises; target of Rs 724: Geojit

Geojit is bullish on Healthcare Global Enterprises has recommended buy rating on the stock with a target price of Rs 724 in its research report dated February 19, 2026.

Broker Research

February 20, 2026 / 11:10 IST

Buy

Geojit's research report on Healthcare Global Enterprises

In Q3FY26, the company posted a 13% YoY revenue growth, supported by a 5% YoY improvement in ARPP (Average Revenue Per Patient) to Rs. 84,208, along with healthy volume growth of 8% YoY. EBITDA increased 24% YoY to Rs. 110cr, with margins expanding by 150 bps to 17.3%, driven by operating leverage. EBT declined by 53% YoY to Rs. –6cr in Q3FY26, primarily impacted by higher depreciation charges and increased finance costs. The management plans to add 1,000 beds over the next 2-3 years through organic expansions and strategic acquisitions. The company has announced a rights issue of up to Rs. 420cr aimed at strengthening its balance sheet. A successful reduction in debt through this initiative would enhance financial flexibility and position the company to pursue additional acquisitions, thereby supporting its long-term growth prospects.

Outlook

Healthcare Global Enterprises Ltd (HCG) is well positioned to deliver robust top-line growth over the next 2–3 years, driven by sustained improvement in ARPP and ongoing bed additions. Management is also focused on enhancing profitability through a better case mix and improved capacity utilization. The proposed rights issue is expected to aid in deleveraging and further strengthen the balance sheet. With KKR & Co. Inc. as the new promoter, the company is likely to witness a strategic transformation, unlocking growth opportunities and driving operational efficiencies. Accordingly, we upgrade our rating to BUY with a revised target price of Rs. 724, based on 16x FY28E EV/EBITDA.

For all recommendations report, click here