Hold Healthcare Global Enterprises; target of Rs 170: ICICI Direct

ICICI Direct's research report on Healthcare Global Enterprises

Signs of a strong recovery amid sharp sequential growth of 28%, 75% in revenues, EBITDA, respectively, in Q2FY21, normalisation of OPD/IPD inflows as travel restrictions ease out point towards a better H2FY21 vis-à-vis H1FY21. The domestic business has already reached near pre-Covid levels on the back of strong growth seen in Tier-II/III cities. Furthermore, revival of inter-state travel and resumption of medical tourism from neighbouring countries (like Bangladesh) is likely to reach pre-Covid levels by the end of FY21, which will further support financials.

Outlook

We change our recommendation from BUY to HOLD with a revised target price of Rs 170 (13x FY23E EV/EBITDA). Moderation of capex and improvement in return ratios would remain key monitorables.

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