HealthCare Global Enterprises (HCG IN) – Management Meet Update – Structural levers to drive growth – BUY
Published on 01 Oct 2026
We believe the recent strategic investment by KKR will bring in more operational and financial efficiency. Currently, HCG enjoys ~18% Post-IND AS margin, which is lower than its peers. We expect KKR to drive growth through bed expansion, largely brownfield, better payor mix, focused marketing initiatives, and scale-up of margins. We expect ~24% EBITDA CAGR over FY26-28E. At CMP, the stock trades at attractive valuations of ~19x EV/EBITDA adjusted for rentals and minority. We retain ‘BUY’ rating with TP of INR820/share (unchanged) valuing at 22x on FY28E pre-IND AS EV/EBITDA.
