Healthcare Global Enterprise - Good BS
Healthcare Global Enterprises Ltd is engaged in setting up and managing hospitals and medical diagnostic services including scientific testing and consultancy services in the pharmaceutical and medical sector.
Business Area
1. Presence in Oncology value chain
2. Cancer Hospital/Networks
3. Fertility Business
4. Multispeciality hospital in 4 small towns
Revenue Break
95% from Oncology and Cancer Network
5% from Fertility and Multispeciality hospital
General Notes
1. Slowly expanding its business in smaller towns by providing quality facilities
2. Sales have been growing steadfast on QOQ basis with co turning profits in last 2 quarters
3. EPS turned positive in last 2 QOQ
4. Borrowings getting reduced from last 3 YOY but still looking significant. 1.25% of reserves are borrowings
5. Cash on balancesheet is big since they has sold their entire stake in Sept 2021, the company sold its entire 38% stake in its JV, Strand Life Sciences Pvt Ltd to Reliance Industries for ~157 crores. It acquired the oncology hospital labs and clinical trials business from the JV for ~81 crores consequent to the stake sale. It booked a profit of ~142 crores on the sale.
6. Debtor days and Payables are slowly seeing improvements which is just a begining. Lot of efforts is required to look clean
7. ROCE is meager since its EPS turned around in last 2 quarters so it might take another 6 months to have good ROCE. Presently it stands at 5%
8. IFC is investor but slowly reducing its stake.
9. Overall balancesheet looks good and worth for investment
Business Area
1. Presence in Oncology value chain
2. Cancer Hospital/Networks
3. Fertility Business
4. Multispeciality hospital in 4 small towns
Revenue Break
95% from Oncology and Cancer Network
5% from Fertility and Multispeciality hospital
General Notes
1. Slowly expanding its business in smaller towns by providing quality facilities
2. Sales have been growing steadfast on QOQ basis with co turning profits in last 2 quarters
3. EPS turned positive in last 2 QOQ
4. Borrowings getting reduced from last 3 YOY but still looking significant. 1.25% of reserves are borrowings
5. Cash on balancesheet is big since they has sold their entire stake in Sept 2021, the company sold its entire 38% stake in its JV, Strand Life Sciences Pvt Ltd to Reliance Industries for ~157 crores. It acquired the oncology hospital labs and clinical trials business from the JV for ~81 crores consequent to the stake sale. It booked a profit of ~142 crores on the sale.
6. Debtor days and Payables are slowly seeing improvements which is just a begining. Lot of efforts is required to look clean
7. ROCE is meager since its EPS turned around in last 2 quarters so it might take another 6 months to have good ROCE. Presently it stands at 5%
8. IFC is investor but slowly reducing its stake.
9. Overall balancesheet looks good and worth for investment
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