HealthCare Global Enterprises (HCG IN) – Analyst Meet Update – Multiple levers to drive growth – BUY
Published on 05 Dec 2025
We attended HealthCare Global Enterprises’ (HCG) virtual analyst meet. HCG 1HFY26 consolidated EBITDA grew by ~20% YoY and 14% CAGR over FY23-25. Mgmt guided higher EBITDA growth than historical growth in coming years. HCG’s asset-light approach with a focus on partnerships has made its business model more capital efficient and scalable, in our view. We believe the recent strategic investment by KKR will bring in more operational and financial efficiency. Currently, HCG enjoys 13-14% PRE 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 ~22% EBITDA CAGR over FY25-28E. At CMP, the stock trades at 20x EV/EBITDA adjusted for rentals and minority. Recommend ‘BUY’ rating with a TP of Rs850/share valuing at 25x on Sept FY27E EV/EBITDA.
