Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Market Whispers
Tax Planning
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
IPO News

| More

Healthcare Global Enterprises (Subscribe): Cancer treatment focused business model - ICICIdirect

Posted On: 2016-03-17 20:30:50

IPO Review - Healthcare Global Enterprises

Healthcare Global Enterprise (HCG) is a provider of specialty healthcare in India, focused on cancer and fertility. Under the HCG brand, the company operates the largest private cancer care network with a pan-India presence. HCG network consists of 18 cancer centres across India, including 14 comprehensive cancer centres, three freestanding diagnostic centres and a day care chemotherapy centre. In 2013, the company entered the fertility segment by acquiring 50.1% stake in BACC Healthcare, which operates four fertility centres under the Milann brand in Bangalore. HCG also operates two multi-speciality hospitals in Gujarat.

Investment rationale

Cancer prevalence, incidences in India

The prevalence of cancer in India is ~3.9 million people in 2015, with 1.1 million reported new cancer cases in 2015. However, the real incidence of cancer could be 1.5-2x the reported incidence (1.6-2.2 million new cancer cases) in 2015. The prevalence of cancer in India is expected to increase to ~7.1 million people (~2.1 million new cases annually) by 2020 (Source: Ernst & Young) mainly due to demographic changes, increased exposure to risk factors like tobacco and alcohol consumption, growing awareness and increasing demand for medical tourism.

Existing demand-supply gap in diagnosis, treatment

Despite high demand for comprehensive cancer care centres, India has only 200-250 comprehensive cancer centres, which represents just one per 6 million people. Also, ~40% of these centres are located in eight metropolitan cities. In addition, there is a significant shortage of oncologists in India (one oncologist per 1,600 cancer patients). Due to the limited access to cancer care in India and inability of significant sections of the population to pay for quality care, only around 15-20% of cancer patients are currently able to undergo radiation treatment in India, as compared to a potential clinical need of 40-50% of cancer patients.

Sustainable business model in fast growing segments

HCG operates the largest private cancer care network across India. The HCG network consists of 18 comprehensive cancer centres. Each cancer centre offers comprehensive cancer diagnosis and treatment services (including radiation, medical oncology and surgical treatments). HCG network operates on a hub-and-spoke model, wherein its HCG centre of excellence in Bengaluru serves as a hub to other cancer centres. This network operates with a strong pool of 400 specialist physicians including 219 oncologists, 23 radiologists, 16 pathologists and 142 other specialist in its HCG network. These specialist physicians adopt a technology-focused approach to diagnosis and treatment. Apart from this, acquisition of the fertility business is an add-on driver for HCG over the long term.

Priced at 3.6-3.8x on FY15 sales of Rs. 519.4 crore

At the IPO price band of Rs. 205-218, the stock is available at 3.6-3.8x of FY15 sales of Rs. 519.4 crore. The asking price is in sync with recent deals in the healthcare segment. We recommend that investors SUBSCRIBE to the issue as it is a sustainable business model with good visibility.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

HDFC updates on proposed IPO of HDFC Standard Life Insurance Company Ltd
Srei Equipment Finance plans to dilute upto 25% of its capital
Cochin Shipyard Ltd - IPO Note - Angel Broking
Security and Intelligence Services (India) Ltd - IPO Note - Angel Broking
M&M to sell part of its stake in Mahindra Logistics Ltd in IPO
Salasar Techno Engineering Ltd - IPO Note - Hem Securities Ltd
ICICI Lombard General Insurance Company Limited files DRHP for IPO
20 Microns Nano Minerals Ltd to come with SME IPO
AU Small Finance Bank Ltd - IPO Note - CSEC Research
AU Small Finance Bank - IPO Note - Sushil Finance
IPO: AU Small Finance Bank - Subscribe - IIFL
CDSL IPO evokes huge demand from investors
Ashok Leyland Ltd's subsidiary Hinduja Leyland Finance withdraws IPO
CDSL IPO subscribed 170.11 times
GTPL Hathway Ltd - IPO Note - Angel Broking
Central Depository Services Ltd - IPO Note - Angel Broking
Bharat Road Network Ltd receives observation letter from SEBI for the DRHP
PSP Projects Limited - IPO Note - Angel Broking
India Grid Trust - IPO Note - Angel Broking
Hudco Ltd - Focus on Housing and Urban Infrastructure Finance in India: Angel Broking
S Chand and Company Limited IPO garners subscription of 59.49 times
S.Chand & Company Ltd - Providing the syllabus for growth: Angel Broking
S. Chand and Company Limited - IPO Note - Sushil Finance
Shankara Building Products Limited IPO to close for subscription today
CL Educate Limited receives subscription of 1.90 times
Escorp Asset Management IPO to open for subscription on Mar 31, 2017
Avenue Supermarts Limited to list today
Chemcrux Enterprises Ltd SME IPO gets huge over subscription
Shankara Building Products Limited - Thrust on retail to boost potential - Angel Broking
CL Educate Limited - Preparing for the big Test: Angel Broking
Optimus Finance Ltd announces IPO of wholly owned subsidiary
Gitanjali Brands Limited files DRHP with SEBI, BSE and NSE
Jagran Prakashan Limited announces fixing of IPO price by Music Broadcast Ltd at Rs. 333
Avenue Supermarts Limited - A retailer with a growth appetite - Angel Broking
Avenue Supermarts Limited - IPO Note - Sushil Finance
Music Broadcast Limited - IPO Note - Sushil Finance
Avenue Supermarts Limited - A retailer with a growth appetite: Angel Broking
Music Broadcast Limited fixes IPO price band as Rs. 325 to Rs. 333
Music Broadcast Limited IPO to open on Mar 6, 2017
India Finsec Ltd arm IFL Enterprises Limited gets approval fo Public Issue of equity shares on SME Platform of BSE Limited
SREI Infrastructure Finance Ltd's arm Bharat Road Network Limited Files DRHP with SEBI for IPO
GlobalSpace Technologies Limited plans SME IPO, files papers with BSE
Nakshatra World Limited, wholly owned subsidiary of Gitanjali Gems Ltd to raise funds through IPO
Jagran Prakashan Ltd arm Music Broadcast Ltd files DRHP with SEBI for IPO
Majestic Research Services and Solutions Ltd receives approval from ROC for RHP filed for Further Public Issue
GNA Axles Limited - IPO Note Attractive on Valuations: Subscribe - Angel Broking
L&T Technology Services Limited - Issue competitively priced - Subscribe - Angel Broking
IRB Infrastructure Developers Ltd arm files for IPO of units
RBL Bank - IPO Note - SUBSCRIBE - Long-term Play on Strong Growth Potential - Reliance Securities
RBL Bank - IPO Note - Strong Management at the helm of affairs - Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017