Buy HealthCare Global Enterprises; target of Rs 420: Prabhudas Lilladher

Prabhudas Lilladher is bullish on HealthCare Global Enterprises has recommended buy rating on the stock with a target price of Rs 420 in its research report dated November 10, 2023.

Broker Research

November 16, 2023 / 21:54 IST

Buy

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on HealthCare Global Enterprises

HealthCare Global Enterprises (HCG) Q2 consolidated EBITDA grew by 13% YoY (14% QoQ) to Rs. 846mn; in-line with our estimates aided by ramp-up in new units. We expect margins to improve, as benefit of commercialization of total 5 LINAC machines will reflect in H2FY24 along with scale up in new centers. The company’s asset light approach with focus on partnering has made its business model more capital efficient and scalable, in our view. Our FY24/FY25E EBITDA stand remains unchanged and we expect 23% EBITDA (PRE IND AS) CAGR over FY23-25E. At CMP, the stock trades at 16x FY25E EV/EBITDA adjusted for rentals.

Outlook

Maintain ‘Buy’ rating with a revised TP of Rs 420/share (earlier at Rs.385/ share) valuing at 16x (assign multiple is 25-30% discount to peers) on Sept 2025E EV/EBITDA as we roll forward.

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