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AVOID to Healthcare Global IPO : HEM securities

HEM securities has come out with its report on Healthcare Global IPO. The research firm has recommended to "AVOID" the IPO with Cautions in its research report as on March 15, 2016.

March 30, 2016 / 13:20 IST
     
     
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    HEM securities report on Healthcare GlobalCompany is a provider of speciality healthcare in India focused on cancer and fertility. Under the “HCG” brand, company operate the largest cancer care network in India in terms of the total number of private cancer treatment centres licensed by the AERB as of May 31, 2015. (Source: Government of India, Atomic Energy Regulatory Board) .Under the “Milann” brand, company operate its fertility centres. As of December 31, 2015, co's HCG network consisted of 14 comprehensive cancer centres, including its centre of excellence in Bengaluru, three freestanding diagnostic centres and one day care chemotherapy centre across India. Each of co's comprehensive cancer centres offers, at a single location, comprehensive cancer diagnosis and treatment services (including radiation, medical oncology and surgical treatments).COMPANY’S STRENGTHSLargest provider of cancer care in India with a proven track recordEntry into high potential fertility businessCo's business model and partnership arrangementsStrong management team with successful track recordVALUATIONThe company is bringing the ipo at price band of Rs 205-218. The co is the largest provider of cancer care in India with a proven track record & has now made entry into high potential fertility business also. Though co's “hub and spoke” business model, wherein co's HCG centre of excellence in Bengaluru serves as a “hub” to its other cancercentres looks attractive but looking after the valuations , issue looks overpriced at current levels. Hence we recommend investors to "Avoid" the issue.For all IPO stories, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    first published: Mar 15, 2016 07:10 pm

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