HealthCare Global Enterprises (HCG) Share: Hospital Stock Jumps After 14% Drop In 6 Sessions; BUY Post Q4?

HealthCare Global Enterprises (HCG) Share Price: This small-cap hospital stock witnessed its bullish trend after six consecutive sessions. HCG's share price jumped by nearly 4% on Wednesday, May 28, after crashing by nearly 14%. Analysts are optimistic about its growth ahead.

Healthcare Global Enterprises Share Price:

After market hours of May 28, HCG's share price closed at Rs 552.50 apiece on BSE, up by 3.50% with a market cap of Rs 7,690.85 crore.

In the previous session, this stock was down nearly 4%. Notably, HCG shares have been under pressure since May 20th, falling by 13.8% till May 27th. The stock price was above Rs 610 levels on May 19th.

Healthcare Global Enterprises (HCG) Q4 Results:

The pharma giant's consolidated Income from Operations ("Revenue") was Rs 5,851 mn as compared to Rs 4,946 mn in the corresponding quarter of the previous year, reflecting a year-on-year growth of 18%. However, its PAT and minority interest stood at Rs 74 mn, as compared to INR 213 mn in the corresponding quarter of the previous year.

In terms of revenue, markets like Borivali and South Mumbai grew by 38% and 37% YoY respectively. Also, Nagpur & Jaipur grew by 28% and Kolkata grew by 22% YoY.

EBITDA from Emerging centers was Rs 70 mn, as compared to Rs 49 mn in the corresponding quarter of the previous year. Also, EBITDA for Established centers was Rs 1,154 mn, a growth of 15% year-on-year.

Raj Gore, CEO HealthCare Global Enterprises highlighted that FY25 was yet another strong year for the company in terms of operational & financial performance. Revenues for HCG excluding Milann centres grew by strong 17.4% standing at Rs. 2,165.1 crores. Adjusted EBITDA excluding Milann centres too witnessed strong growth of 18.3%, standing at Rs. 391.3 crores with margins of 18.1%. This strong growth is a testament to our robust business model and medical talent.

Continuing our strategic focus on inorganic growth, Gore added, "we acquired MG Hospital in Vizag in FY25, further consolidating our presence and establishing HCG as the leading cancer care provider in that region. This acquisition marks our third in just 18 months-highlighting our consistent and focused approach to expansion."

Looking ahead, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises said, "we are making focused investments in next-generation capabilities, especially in early cancer detection and precision medicine. In line with our commitment to cutting-edge diagnostics and research, we are pleased to share that we are acquiring the Orbitrap Astral Mass Spectrometer from Thermo Fisher Scientific-one of the most advanced platforms globally for high-resolution mass spectrometry. This acquisition will significantly enhance our molecular and proteomic profiling capabilities, enabling more precise disease characterization and paving the way for next-generation biomarker discovery and targeted therapies."

For the fiscal year 2025-26, Gore said, "As we look ahead to FY26, we remain optimistic about sustaining our growth momentum, backed by our strong clinical talent, robust infrastructure, and patient-centric care model. We are placing greater focus on accelerating our digital initiatives and enhancing brand awareness to reach and engage more patients across the country."

Healthcare Global Enterprises (HCG) Share Price Recommendation:

In the review note, Axis Securities analysts said, "The cancer industry is growing at a CAGR of 17%, and HCG is outpacing this growth. The company plans to add 900 incremental beds over the next 4 to 5 years to capitalise on emerging opportunities."

"Several margin improvement levers are in place, as most emerging centres have matured with margins exceeding 20%. HCG has strengthened its infrastructure and expanded its network through acquisitions and new investments, positioning itself for long-term growth and enhanced patient outcomes. The recent entry of new investors such as KKR, replacing CVC, signals confidence in the company's strategic vision and growth prospects," the analysts note added.

Accordingly, Axis maintained its BUY recommendation on HCG stock, while raising the target price to Rs 620 per share from earlier Rs 575 per share.

Meanwhile, Shreya Khandelwal, Research Analyst, PL Capital said, " The company'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 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, rationalization of existing assets and scale up of margins."

PL analyst's note added, "Our FY26/FY27E EBITDA broadly remains unchanged. We expect 23% EBITDA CAGR over FY25-27E. At CMP, the stock trades at 18.5x FY27E EV/EBITDA adjusted for rentals and minority. Maintain 'BUY' rating with a revised TP of Rs620/share valuing at 20x on FY27E EV/EBITDA."

About Healthcare Global Enterprises (HCG):

HealthCare Global Enterprises Ltd. (HCG), headquartered in Bengaluru, is the largest provider of cancer care in India. Through its network of 22 comprehensive cancer centers across India and Africa, HCG has brought advanced cancer care to the doorstep of millions of people.

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