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26 Aug, 2025 12:21

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SPA Research report on Healthcare Global HealthCare Global Enterprises (HCG) is a provider of speciality healthcare, focused on cancer and fertility. Under the 'HCG' brand, it operates the largest cancer care network in India with a chain of 14 comprehensive cancer centres, including a centre of excellence in Bengaluru, three freestanding diagnostic centres and one day care chemotherapy centre. HCG network is spread across 13 cities and towns across eight states in India with 912 operational beds, which included ICU beds and day-care beds. In FY15 its cancer segment had 37458 new patients registration followed by average occupancy of 53.5%. HCG has acquired 50.1% equity interest in BACC Healthcare in 2013 which operates fertility centres under the 'Milann' brand. HCG now operates four Milann fertility centres in Bengaluru. Its revenue and EBIDTA has grown at CAGR of 25.1% and 34.6% between FY12-15.Largest cancer care provider in India HCG network is the largest provider of cancer care in India in terms of the total number of private cancer treatment centres licensed by the AERB as of May 31, 2015. (Source: Government ofIndia, Atomic Energy Regulatory Board). HCG operates 18 HCG cancer centres, including 14 comprehensive cancer centres, three freestanding diagnostic centres and 1 day care chemotherapy centre in India as of Dec 2015. The company began the expansion of network in 2006 and has since added 11 comprehensive cancercentres along with diagnostic and day care chemotherapy centres. HCG network is spread across 13 cities and towns across eight states in India. The extensive cancer network supports provision of cancer care beyond metropolitan cities to patients throughout India. The company has a strong reputation within the medical community due to deployment of advanced technologies, successful clinical outcomes and the extensive clinical experience of its specialist physicians.Outlook and ValuationHCG has emerged as one of the largest cancer care service providers in India. Indian healthcare industry is likely to grow at a CAGR of 17.0% to reach INR 280 bn by 2020 driven by population growth, rising income levels, and increase in lifestyle-related diseases. HCG is likely to grow ahead of industry as it is well placed to capture increasing opportunities in the industry backed by strong brand recognition, high quality along with affordable pricing, past track record and experienced management. HCG's expansion, which is on the verge of completion would bring strong growth matrix for the company while recently added new centres (mostly in 2012) would see strong operating leverage. At the issue price band of INR 218, the stock is available at EV/EBIDTA of 23.8x based on FY16Eannualised earnings. Its nearest comparable like Apollo Hospitals and Narayana Hrudayalaya are trading at EV/EBIDTA of 25.7x and 34.2x respectively based on FY16E earnings. We recommend investors to SUBSCRIBE 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.

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