HealthCare Global Enterprises Q1 review

HealthCare Global Enterprises Ltd.’s Q1 FY22 performance was better than our estimates driven by continued sequential recovery in the oncology hospital segment which recorded revenue growth of 9.6% QoQ.

Coupled with controlled cost Ebitda margin beat our estimates by 190 basis points to 15.9% (our estimate: 14.0%).

We believe that the business has normalised and this growth trend will continue.

Recent capital infusion has removed the key overhang of high leverage with repayment of debt from the fund raising exercise.

We remain positive on the stock as Healthcare Global is poised to grow positively hereon and strengthening of balance sheet with no major capex plan in near term. BloombergQuint