ICICI Direct's research report on Healthcare Global Enterprises
HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under a single corporate entity. Owing to exclusive agreement with vendors, HCG procures equipment on a deferred payment basis. Milann offers seven fertility centres in India. HCG network has 22 comprehensive cancer centres (one in Kenya), four multi-specialty hospitals. HCG India, capacity beds: 1944; 1702 operational • Revenue mix FY22: HCG:96%, Milann:4%; occupancy FY22: 58.3%; ARPOBD FY22: 36,697.
Maintain BUY due to 1) improvement in occupancies sustainable, 2) newer assets to turn profitable and complement existing centres and 3) calibrated expansion of moving in metros and non-metros now coming to the fore. We value HCG at Rs 370 (HCG existing centres and new centres at 13x & 11x, respectively, at FY24E EV/EBITDA and Milan centres at 1x FY24E EV/sales).
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