Goldman Sachs has upgraded Healthcare Global Enterprises stock to buy citing expansion and successful capex without margin dilution.
Throwing more light on the business outlook BS Ajaikumar, Chairman & CEO, Healthcare Global Enterprises said mature centers have been upwards of 18 percent at unit level. It is close to our target of 20-21 percent.
Moreover, the new centers have ramped up quickly to breakeven EBITDA positive, he said. The Borivali center is also performing well but will take time to breakeven because of the real estate and rent costs etc. It started functioning fully from October. The South Mumbai center is still in progress and will start towards end of first quarter.
They also have tie-ups with doctors in Nashik and Nagpur.
There are new centers rolling out as per plan. There would be about 25 centers of oncology in next 12-18 months from the original plan of 20-21 centers.
Going forward there may arise various challenges but there is huge potential and growth is as planned. The company is on track to perform well, he said
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