Mehabe score: 2 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 4.
Description
HealthCare Global Enterprises Limited is engaged in managing cancer hospitals, cancer centers and medical diagnostic services, including scientific testing and consultancy services in the pharmaceutical and medical sector.Site:HCG
Market Cap:
Rs 2,525 cr
Price:
202.0
Trading pe:
x
Book-value:
65.2/share
Div yield:
0.00 %
Earning yield:
-0.80%
Face-value:
10.0/share
52week high:
220.00
52week low:
106.95
Technical Analysis
Stock trades at 202.0, above its 50dma 186.63. It also trades above its 200dma 161.91. The stock remains bullish on techicals
The 52 week high is at 220.00 and the 52week low is at 106.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– Promoter holding has increased by 3.84% over last quarter.
Weakness
– Stock is trading at 3.10 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.11% for last 3 years.
Competition
– The industry trades at a mean P/E of 39.9x. Max Healthcare trades at the industry’s max P/E of 478.55x. HCG trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. HCG has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Metropolis Healt: a return of 16.36 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 298.0 cr compared to Rs 270.0 cr for period ended Mar 2020, a rise of 10.4%
Operating Profits reported at Rs 39.0 cr for period ended Mar 2021 vis-vis 34.0 for period ended Mar 2020 .
Operating Margins expanded 49.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -8.15 compared to Rs -2.33 for previous quarter ended Dec 2020 and Rs -4.91 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1013.0 cr for period ended Mar 2021 vis-vis sales of Rs 1092.0 cr for the period ended Mar 2020, a fall of 7.8%. The 3 year sales cagr stood at 6.9%.
Operating margins shrank to 12.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs -193.0 cr for period ended Mar 2021 vis-vis sales of Rs -107.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -25.0% compared to -8.0% over the last 3 Years. – The stock has given a return of 66% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is -78% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.34% vis-vis 6.77% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 13.33% vis-vis 13.48% for Dec 2020
Conclusion
– Promoter holding has increased by 3.84% over last quarter. – Stock is trading at 3.10 times its book value
– has low interest coverage ratio.
– has a low return on equity of -8.11% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 186.63 and is trading at 202.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
