Goal: ₹621
CMP: ₹503.50
HealthCare International’s (HCG) progress over the subsequent 2-3 years is anticipated to be pushed by a mix of natural enlargement, brownfield initiatives, and acquisitions. The corporate plans so as to add roughly 900 beds, rising operational capability from 2,154 beds in Q3FY25 to 2,800 beds by FY27.
To maximise the potential of its current facilities, HCG is prone to broaden in high-demand markets like Bengaluru. Moreover, the worldwide affected person section, contributing 3.5-4 per cent of complete income, has been impacted by geopolitical challenges, significantly in Bangladesh, however is anticipated to get well ranging from Q4FY25.
HCG has skilled a short lived dip in EBITDA margins resulting from decrease working leverage. Nonetheless, with KKR set to amass a 54 per cent stake, we anticipate HCG will profit from operational enhancements underneath new administration. KKR’s confirmed experience in healthcare investments will play an important position on this transition. Moreover, as the corporate realigns its income streams, we count on EBITDA margins to enhance considerably, rising from 17 per cent in FY25 to 21 per cent in FY27.
We count on Income and EBITDA to develop at a CAGR of 19 per cent and 28 per cent, respectively, from FY24-27, pushed by income realignment (deal with excessive margin oncology therapies), operational experience from KKR’s stake acquisition, and the rising significance of oncology in India’s healthcare market.
