Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
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 feedback@equitybulls.com





Other Headlines:

Hindustan Aeronautics Ltd to list on March 28, 2018
Expectations high on listing of Bandhan Bank shares tomorrow
Mishra Dhatu Nigam Limited IPO receives subscription of 1.21 times
Lemon Tree Hotels Limited - IPO Note - Angel Broking
Mishra Dhatu Nigam Ltd - IPO Note - Sushil Finance
ICICI Securities Ltd - IPO Note - Sushil Finance
Lemon Tree Hotels Ltd - IPO Note - Sushil Finance
Mishra Dhatu Nigam Ltd - IPO Note - Angel Broking
Mishra Dhatu Nigam Ltd - IPO Note - Avoid - Hem Securities
ICICI Securities Ltd - IPO Note - SSJ Finance & Securities
Mishra Dhatu Nigam Ltd - IPO Note - Subscribe - SSJ Finance & Securities
IPO Note: MISHRA DHATU NIGAM LTD - NOT RATED - Kotak
IPO Note: ICICI Securities Ltd - SUBSCRIBE - Kotak
IPO: Mishra Dhatu Nigam Ltd - IIFL
Sandhar Technologies Limited - IPO Note - Angel Broking
Hindustan Aeronautics LTD - IPO Note - HEM Securities
ICICI Securities IPO to open for subscription on Mar 22, 2018
IPO Note: Sandhar Technologies Ltd - SUBSCRIBE - Kotak
IPO Note: Hindustan Aeronautics Ltd - SUBSCRIBE - Kotak
Bandhan Bank Ltd - IPO Note - Subscribe - HEM Securities
HDFC Asset Management Company Ltd files DRHP for IPO
Bandhan Bank Ltd - IPO Note - Subscribe - SSJ Finance
Bandhan Bank Limited - IPO Note - Angel Broking
IPO of ICICI Securities Ltd to open on March 22, 2018
Bharat Dynamics Ltd - IPO Note - SUBSCRIBE - Kotak
Bharat Dynamics Ltd - SUBSCRIBE - IPO Report - HEM SECURITIES
Bandhan Bank Ltd - IPO NOTE - Arihant Capital Markets
Bharat Dynamics Ltd - SUBSCRIBE - IPO Note - SSJ Finance
Bharat Dynamics Ltd - IPO Note - Angel Broking
Sarveshwar Foods Limited - IPO NOTE - Arihant Capital Markets
H.G. Infra Engineering Ltd - AVOID - IPO Update - SSJ Finance
HG Infra Engineering - IPO Note - Angel Broking
IPO Note - Aster DM Healthcare Ltd - Avoid - By SSJ Finance & Securities
Galaxy Surfactants Ltd - IPO Note - SUBSCRIBE - SSJ Finance & Securities
Shalby Limited - IPO Note - Angel Broking
Future Supply Chain Solutions Ltd - IPO Note - Angel Broking
HDFC Asset Management Company Limited to file for IPO
Reliance General Insurance receives final observations from SEBI for IPO
Srei Equipment Finance Ltd files DRHP for IPO
Future Supply Chain Solutions Ltd IPO to open for subscription on Dec 6, 2017
New India Assurance Co Ltd - IPO Note - CSEC Research
Khadim India Ltd - IPO Note - Angel Broking
The New India Assurance Company Ltd - IPO Note - Angel Broking
Mahindra Logistics Limited - IPO Note - Angel Broking
IPO of The New India Assurance Company Ltd. opens on November 01, 2017
Reliance Nippon Life Asset Management Ltd - IPO Note - Angel Broking
Srei Equipment Finance Ltd approves IPO
Price band for Mahindra Logistics Limited's IPO fixed
Indian Energy Exchange to list on Oct 23, 2017
Mahindra Logistics Limited IPO to open for subscription on Oct 31, 2017


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

disclaimer copyright © 2005 - 2018