Edelweiss' research report on Healthcare Global Enterprises
Despite demonetization, Healthcare Global’s (HCG) Q3FY17 revenue and EBITDA grew 23% and 25% YoY, respectively. While existing oncology centers posted 13% YoY growth in revenues, strong ramp up continued at new centres and they helped cut EBITDA loss to INR 14mn (versus INR 18mn QoQ). Last leg of ongoing expansion (till Q1FY18) is on track, and new centers continue to break even faster.
OutlookIn addition, performance at some centers that were earlier performing sub‐optimally, like Vijaywada (+72% YoY) for instance, is improving. HCG is positioned for robust EBITDA growth owing to strong therapy tailwind and EBITDA margin levers. Maintain ’BUY’ with TP of INR 310 (18x FY19E EV/EBITDA).
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