Geojit Financial Services has issued a buy rating on Healthcare Global Enterprises Ltd (HCG) with a target price of ₹724, as reported by Moneycontrol. The recommendation is based on the company's strong Q3FY26 performance and strategic initiatives. The brokerage has upgraded its rating to buy based on 16x FY28E EV/EBITDA valuation methodology.
In Q3FY26, Healthcare Global Enterprises demonstrated robust financial growth with 13% year-on-year revenue growth, according to Moneycontrol reports. The company's Average Revenue Per Patient (ARPP) improved by 5% YoY to ₹84,208, supported by healthy volume growth of 8% YoY. EBITDA increased 24% YoY to ₹110 crore, with margins expanding by 150 basis points to 17.3%, driven by operating leverage benefits.
Despite strong operational performance, EBT declined by 53% YoY to ₹6 crore in Q3FY26, primarily impacted by higher depreciation charges and increased finance costs, as reported by Moneycontrol. The company has announced a rights issue of up to ₹420 crore aimed at strengthening its balance sheet and enhancing financial flexibility. This initiative is expected to support the company's long-term growth prospects through strategic acquisitions.
The management has outlined plans to add 1,000 beds over the next 2-3 years through organic expansions and strategic acquisitions, according to Moneycontrol reports. With KKR & Co. Inc. as the new promoter, the company is positioned for strategic transformation, unlocking growth opportunities and driving operational efficiencies. The brokerage expects the company to deliver robust top-line growth over the next 2-3 years, driven by sustained improvement in ARPP and ongoing bed additions.
