NSEI:HCG

Stock Analysis Report

HealthCare Global Enterprises

Executive Summary

HealthCare Global Enterprises Limited, together with its subsidiaries, provides specialty healthcare services focusing on cancer.

Snowflake

Fundamentals

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has HealthCare Global Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

HCG

3.0%

IN Healthcare

3.3%

IN Market


1 Year Return

-52.4%

HCG

10.3%

IN Healthcare

7.1%

IN Market

Return vs Industry: HCG underperformed the Indian Healthcare industry which returned 10.3% over the past year.

Return vs Market: HCG underperformed the Indian Market which returned 7.1% over the past year.


Shareholder returns

HCGIndustryMarket
7 Day3.5%3.0%3.3%
30 Day-3.4%3.3%2.9%
90 Day-10.6%11.5%3.1%
1 Year-52.4%-52.4%10.8%10.3%9.4%7.1%
3 Year-54.6%-54.6%-7.9%-9.0%22.7%16.4%
5 Yearn/a32.0%29.8%44.0%30.4%

Price Volatility Vs. Market

How volatile is HealthCare Global Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HealthCare Global Enterprises undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCG (₹109.75) is trading below our estimate of fair value (₹400.62)

Significantly Below Fair Value: HCG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HCG is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: HCG is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HCG is overvalued based on its PB Ratio (2.1x) compared to the IN Healthcare industry average (1.9x).


Next Steps

  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is HealthCare Global Enterprises forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

82.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HCG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HCG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HCG's revenue (13.1% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: HCG's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCG is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has HealthCare Global Enterprises performed over the past 5 years?

-21.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HCG is unprofitable, and losses have increased over the past 5 years at a rate of -21.8% per year.

Accelerating Growth: Unable to compare HCG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HCG is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (13.6%).


Return on Equity

High ROE: HCG has a negative Return on Equity (-8.64%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HCG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HCG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is HealthCare Global Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: HCG's short term assets (₹2.7B) do not cover its short term liabilities (₹5.5B)

Long Term Liabilities: HCG's short term assets (2.7B) do not cover its long term liabilities (5.8B)


Debt to Equity History and Analysis

Debt Level: HCG's debt to equity ratio (97.8%) is considered high

Reducing Debt: HCG's debt to equity ratio has increased from 83.4% to 97.8% over the past 5 years.

Debt Coverage: HCG's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: HCG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: HCG has a high level of physical assets or inventory.

Debt Coverage by Assets: HCG's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is HealthCare Global Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage0.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate HCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HCG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCG's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of HealthCare Global Enterprises's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

B. S. Kumar (68yo)

14.3yrs

Tenure

₹28,070,537

Compensation

Dr. B.S. Ajai Kumar, M.D. has been Chairman of the Board and Chief Executive Officer at HealthCare Global Enterprises Limited since 2005. Dr. Kumar is a radiation and medical oncologist with 30 years of ex ...


CEO Compensation Analysis

Compensation vs. Market: B. S.'s total compensation ($USD395.97K) is above average for companies of similar size in the Indian market ($USD33.77K).

Compensation vs Earnings: B. S.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.2yrs

Average Tenure

63yo

Average Age

Experienced Management: HCG's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

63yo

Average Age

Experienced Board: HCG's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,381,96501 Apr 19
Ganesh Nayak
EntityIndividual
Shares7,000
Max Price₹197.42
Buy₹2,147,05127 Feb 19
Anant Kittur
EntityIndividual
Shares10,700
Max Price₹200.87
Buy₹745,47922 Feb 19
Anant Kittur
EntityIndividual
Shares3,800
Max Price₹196.18
Buy₹3,402,60220 Feb 19
B. S. Kumar
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares17,157
Max Price₹201.75
Buy₹982,42620 Feb 19
Shwetal Gadhavi
EntityIndividual
Shares5,000
Max Price₹197.34
Buy₹1,919,92220 Feb 19
Gangadhara Ganapati
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Non-Independent Director
Shares10,000
Max Price₹195.10

Ownership Breakdown


Management Team

  • A. Sadasivam (63yo)

    Executive Director of Operations

    • Tenure: 11.2yrs
    • Compensation: ₹10.82m
  • Bilimagga Ramesh (68yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: ₹7.28m
  • Sudhir Bahl

    CEO of Milann

    • Tenure: 0yrs
  • B. S. Kumar (68yo)

    Chairman & CEO

    • Tenure: 14.3yrs
    • Compensation: ₹28.07m
  • Srini Raghavan (54yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: ₹9.47m
  • Naveen Nagar (48yo)

    Vice President of Medical Services

    • Tenure: 0yrs
  • Sunu Manuel

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
  • Niraj Didwania

    Head of Investor Relations

    • Tenure: 0yrs
  • Madhavi Kanumoory

    Chief Information Officer

    • Tenure: 0.9yrs
  • B Pallavi

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Suresh Senapaty (62yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹1.03m
  • Gangadhara Ganapati (53yo)

    Non-Executive Non-Independent Director

    • Tenure: 13.8yrs
  • Shanker Annaswamy (63yo)

    Non-Executive Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹975.00k
  • Amit Varma (52yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Bilimagga Ramesh (68yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: ₹7.28m
  • Sudhakar Rao (71yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: ₹725.00k
  • B. S. Kumar (68yo)

    Chairman & CEO

    • Tenure: 14.3yrs
    • Compensation: ₹28.07m
  • Sampath Ramesh (68yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹775.00k
  • Bhushani Kumar (63yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹300.00k

Company Information

HealthCare Global Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HealthCare Global Enterprises Limited
  • Ticker: HCG
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: ₹9.852b
  • Shares outstanding: 88.64m
  • Website: https://www.hcgel.com

Number of Employees


Location

  • HealthCare Global Enterprises Limited
  • Unity Building Complex
  • Tower Block
  • Bengaluru
  • Karnataka
  • 560027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539787BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2016
HCGNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2016

Biography

HealthCare Global Enterprises Limited, together with its subsidiaries, provides specialty healthcare services focusing on cancer. The company offers cancer diagnosis and treatment services through radiatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:56
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.