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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Healthcare Global Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:12 pm

Market Cap 6,553 Cr.
Current Price 470
High / Low520/310
Stock P/E126
Book Value 61.8
Dividend Yield0.00 %
ROCE8.92 %
ROE4.78 %
Face Value 10.0
PEG Ratio1.72

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Healthcare Global Enterprises Ltd

Competitors of Healthcare Global Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Healthcare Global Enterprises Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales248274298323352358365408420425442461487
Expenses218236259272292296301336345349365386402
Operating Profit30383951606263727576767485
OPM %12%14%13%16%17%17%17%18%18%18%17%16%17%
Other Income4-3-794143-433324533
Interest27292626232424252627262627
Depreciation40423838384141404141424143
Profit before tax-32-35-104-9142-461101011131118
Tax %16%2%-9%-40%30%-8%-145%76%47%63%57%65%40%
Net Profit-27-35-114-1399-5022546411
EPS in Rs-1.78-2.33-8.15-0.768.22-3.290.430.440.530.540.600.550.97

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2673384515195847008299761,0921,0091,3951,6911,814
Expenses2252924134434995957138649368871,1611,3941,503
Operating Profit4147387685105116112157122234297311
OPM %15%14%9%15%15%15%14%11%14%12%17%18%17%
Other Income4230-210251010-721101514
Interest242932343823427013811998104105
Depreciation2430363944577185148159158163167
Profit before tax-3-10-27303527-33-119-229884553
Tax %-8%-7%-20%-56%-730%34%38%7%-5%3%56%61%
Net Profit-3-11-32522317-31-125-221391824
EPS in Rs-0.56-1.54-5.210.12-0.172.592.36-2.82-12.03-15.433.872.112.66
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-266.67%-190.91%115.62%-60.00%1050.00%-26.09%-282.35%-303.23%-76.80%117.65%-53.85%
Change in YoY Net Profit Growth (%)0.00%75.76%306.53%-175.62%1110.00%-1076.09%-256.27%-20.87%226.43%194.45%-171.49%

Healthcare Global Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:16%
5 Years:14%
3 Years:24%
TTM:13%
Compounded Profit Growth
10 Years:13%
5 Years:29%
3 Years:33%
TTM:115%
Stock Price CAGR
10 Years:%
5 Years:33%
3 Years:23%
1 Year:28%
Return on Equity
10 Years:-3%
5 Years:-5%
3 Years:2%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6768708586878889125139139139139
Reserves217196210341347428389293528731721686722
Borrowings3082923493244204646581,3479779159011,2741,558
Other Liabilities116133147294372461515518401433549601647
Total Liabilities7086887761,0431,2251,4401,6502,2462,0312,2182,3112,7013,067
Fixed Assets5085125285836858289701,6461,3821,5471,5531,7582,091
CWIP01142121148174153463022188336
Investments61206411534934269101011
Other Assets139164205275381385478520593641730850929
Total Assets7086887761,0431,2251,4401,6502,2462,0312,2182,3112,7013,067

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +31516073919898130121220252285
Cash from Investing Activity +-178-12-79-204-210-283-238-101-171125-133-226
Cash from Financing Activity +140-27222168916184-58112-155-140-64
Net Cash Flow-713285-29-24-56-3062190-22-5

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow41.00-261.00-254.00-273.00-239.00-315.00-348.00-546.00156.00-855.00-681.00-604.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days654345435457596267576556
Inventory Days353336324046453532313333
Days Payable186193208264272274303234221199214216
Cash Conversion Cycle-86-117-127-188-178-171-200-136-121-112-116-127
Working Capital Days-4-20-44-72-90-73-92-7033-21-22-26
ROCE %4%1%7%6%7%6%3%1%-1%5%8%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.71%68.41%68.40%71.44%71.43%71.42%71.39%71.39%71.37%71.35%71.30%71.29%
FIIs6.34%6.42%7.24%7.03%6.99%7.22%7.27%7.18%6.37%6.47%6.29%6.37%
DIIs9.62%9.69%8.16%6.59%5.86%4.55%4.02%4.41%5.53%6.58%7.94%8.46%
Public13.33%15.48%16.19%14.94%15.73%16.81%17.32%17.04%16.71%15.59%14.49%13.89%
No. of Shareholders13,89115,06520,57322,36223,66323,01824,67228,70728,85825,93127,32727,289

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Tax Saver Fund1,568,7430.4758.11400,4322024-11-12291.76%
Tata Mid Cap Growth Fund - Regular Plan751,0301.127.82400,4322024-11-1287.55%
Nippon India Pharma Fund400,4320.2714.83400,4322024-11-120%
Taurus Flexi Cap Fund68,4080.922.54400,4322024-11-12-82.92%
Motilal Oswal Nifty Microcap 250 Index Fund40,0490.321.48400,4322024-11-12-90%
ITI Pharma and Healthcare Fund31,9510.921.18400,4322024-11-12-92.02%
Tata Equity Savings Fund - Regular Plan - Growth26,4000.780.98400,4322024-11-12-93.41%
Taurus ELSS Tax Saver Fund20,0001.180.74400,4322024-11-12-95.01%
Motilal Oswal S&P BSE Healthcare ETF3990.180.01400,4322024-11-12-99.9%
Groww Nifty Total Market Index Fund920.010400,4322024-11-12-99.98%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.462.114.14-17.02-12.05
Diluted EPS (Rs.)3.432.103.97-17.02-12.05
Cash EPS (Rs.)15.4613.0214.29-4.913.98
Book Value[Excl.RevalReserv]/Share (Rs.)62.1162.4963.5756.9647.33
Book Value[Incl.RevalReserv]/Share (Rs.)62.1162.4963.5756.9647.33
Revenue From Operations / Share (Rs.)137.28121.58100.5580.84123.53
PBDIT / Share (Rs.)24.8822.4218.0311.4520.20
PBIT / Share (Rs.)12.3610.676.64-1.253.46
PBT / Share (Rs.)4.833.236.42-18.21-12.06
Net Profit / Share (Rs.)2.941.272.90-17.61-12.76
NP After MI And SOA / Share (Rs.)3.462.113.87-15.43-12.03
PBDIT Margin (%)18.1218.4317.9314.1616.35
PBIT Margin (%)9.008.776.60-1.542.80
PBT Margin (%)3.522.656.38-22.52-9.76
Net Profit Margin (%)2.141.042.88-21.78-10.32
NP After MI And SOA Margin (%)2.511.733.84-19.08-9.73
Return on Networth / Equity (%)5.823.416.17-27.74-27.98
Return on Capital Employeed (%)8.768.505.27-0.991.83
Return On Assets (%)1.771.262.42-9.50-4.73
Long Term Debt / Equity (X)0.580.420.410.491.39
Total Debt / Equity (X)0.810.460.460.591.63
Asset Turnover Ratio (%)0.760.500.460.310.40
Current Ratio (X)0.911.021.070.930.52
Quick Ratio (X)0.850.951.010.880.48
Interest Coverage Ratio (X)3.193.012.561.201.30
Interest Coverage Ratio (Post Tax) (X)1.341.170.44-0.060.17
Enterprise Value (Cr.)5119.823866.173975.482784.141294.95
EV / Net Operating Revenue (X)2.682.292.842.751.18
EV / EBITDA (X)14.7712.4015.8619.407.23
MarketCap / Net Operating Revenue (X)2.462.162.682.360.60
Price / BV (X)5.704.254.313.441.74
Price / Net Operating Revenue (X)2.462.162.682.360.60
EarningsYield0.010.010.01-0.08-0.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Healthcare Global Enterprises Ltd as of November 15, 2024 is: 379.65

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Healthcare Global Enterprises Ltd is Overvalued by 19.22% compared to the current share price 470.00

Intrinsic Value of Healthcare Global Enterprises Ltd as of November 15, 2024 is: 658.43

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Healthcare Global Enterprises Ltd is Undervalued by 40.09% compared to the current share price 470.00

Last 5 Year EPS CAGR: 73.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -41.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -139.92, which is a positive sign.
  1. The stock has a low average ROCE of 4.67%, which may not be favorable.
  2. The company has higher borrowings (752.85) compared to reserves (446.85), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (359.15) and profit (-13.08).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Healthcare Global Enterprises Ltd:
    1. Net Profit Margin: 2.14%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.76% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.82% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.34
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.85
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 126 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.81
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Healthcare Global Enterprises Ltd. is a Public Limited Listed company incorporated on 12/03/1998 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L15200KA1998PLC023489 and registration number is 023489. Currently Company is involved in the business activities of Hospital activities. Company’s Total Operating Revenue is Rs. 851.96 Cr. and Equity Capital is Rs. 139.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hospitals & Medical ServicesHCG Tower, Bengaluru Karnataka 560027investors@hcgel.com
https://www.hcgoncology.com
Management
NamePosition Held
Dr. B S Ajai KumarExecutive Chairman
Mr. Raj GoreWholeTime Director & CEO
Ms. Anjali Ajaikumar RossiExecutive Director
Mr. Siddharth PatelNon Exe.Non Ind.Director
Mr. Amit SoniNon Exe.Non Ind.Director
Mr. Rajiv MaliwalInd. Non-Executive Director
Mr. Jeyandran VenugopalInd. Non-Executive Director
Mr. Pradip KanakiaInd. Non-Executive Director
Ms. Geeta MathurInd. Non-Executive Director
Mr. Rajagopalan RaghavanInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Healthcare Global Enterprises Ltd?

The latest intrinsic value of Healthcare Global Enterprises Ltd as on 15 November 2024 is ₹379.65, which is 19.22% lower than the current market price of ₹470.00.

What is the Market Cap of Healthcare Global Enterprises Ltd?

The Market Cap of Healthcare Global Enterprises Ltd is 6,553 Cr..

What is the current Stock Price of Healthcare Global Enterprises Ltd as on 15 November 2024?

The current stock price of Healthcare Global Enterprises Ltd as on 15 November 2024 is ₹470.

What is the High / Low of Healthcare Global Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Healthcare Global Enterprises Ltd stocks is 520/310.

What is the Stock P/E of Healthcare Global Enterprises Ltd?

The Stock P/E of Healthcare Global Enterprises Ltd is 126.

What is the Book Value of Healthcare Global Enterprises Ltd?

The Book Value of Healthcare Global Enterprises Ltd is 61.8.

What is the Dividend Yield of Healthcare Global Enterprises Ltd?

The Dividend Yield of Healthcare Global Enterprises Ltd is 0.00 %.

What is the ROCE of Healthcare Global Enterprises Ltd?

The ROCE of Healthcare Global Enterprises Ltd is 8.92 %.

What is the ROE of Healthcare Global Enterprises Ltd?

The ROE of Healthcare Global Enterprises Ltd is 4.78 %.

What is the Face Value of Healthcare Global Enterprises Ltd?

The Face Value of Healthcare Global Enterprises Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Healthcare Global Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE