HealthCare Global Enterprises Limited

Healthcare — Medical Care Facilities · NSE

₹590.00−₹0.60 (−0.10%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of HealthCare Global Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HealthCare Global Enterprises Limited provides medical and healthcare services in India and internationally.

IndustryMedical Care Facilities

SectorHealthcare

Employees6,761

Annual revenue₹2,522 Cr

How does it make money?

Turns over ₹2,522 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 6,761 employees supports ₹37.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are APOLLO HOSPITALS ENTER. L, SUN PHARMACEUTICAL IND L, CIPLA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 14.7% and earnings to grow about 67.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.7%

Est. earnings growth+67.6%

Analysts8

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +50% while net margin moved -69% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+50%

Margin effect-69%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 380.6x is demanding — it needs sustained high growth to justify
✗ P/E is 115% above its own historical median of 177.1x — expensive by its own standards
✗ P/B of 6.41x is a steep premium to book

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

27/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

380.6x

3Y Median

177.1x

40 monthly readings · mean 225.1x · range 113.6x–763.9x

Sector Median

34.9x

median of 3 sector peers

⚠️Current valuation is approximately 115% above its 3y median of 177.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 991% above the peer median of 34.9x.

vs. its own history

Expensive

177.1x median over 40 months · +115%

vs. sector peers

Expensive

34.9x median of 3 peers · +991%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 93% over 3 years, from ₹901 Cr to ₹1,735 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 53% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 20.0% to 17.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 115% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.6% CAGR
Latest reported year was 13.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹55 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹8,809 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

380.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.41x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.55

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

6.7%

Weak

Low return on total capital employed

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

13.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

170.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹55 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

38.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.5%

Average

Average margins

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

656.5 / 687.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,676 Cr	₹1,890 Cr	₹2,201 Cr	₹2,522 Cr	+14.6%
EBITDA	₹335 Cr	₹339 Cr	₹422 Cr	₹444 Cr	+9.8%
EBITDA Margin	20.0%	17.9%	19.2%	17.6%	—
PAT (Net Profit)	₹29 Cr	₹48 Cr	₹44 Cr	₹14 Cr	-22.3%
EPS	₹2.09	₹3.41	₹3.12	₹0.96	-22.8%
ROE	3.4%	5.8%	4.8%	1.0%	—
ROCE	8.0%	8.6%	8.1%	6.7%	—
Total Debt	₹901 Cr	₹1,274 Cr	₹1,837 Cr	₹1,735 Cr	+24.4%
Free Cash Flow	₹118 Cr	₹99 Cr	₹108 Cr	₹55 Cr	-22.5%

🟢 Revenue has grown at 14.6% a year over 3 years.

🟢 EBITDA has grown at 9.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.0% to 17.6% over 3 years (-2.4 pts).

🔴 PAT (Net Profit) has shrunk at 22.3% a year over 3 years.

🔴 EPS has shrunk at 22.8% a year over 3 years.

🔴 ROE has fallen from 3.4% to 1.0% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 8.0% to 6.7% over 3 years (-1.3 pts).

🔴 Total Debt has grown at 24.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 22.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,923 Cr

Total Liabilities

₹2,512 Cr

Cash & Equivalents

₹536 Cr

Operating Cash Flow

₹347 Cr

Capex

-₹292 Cr

Shareholding (proxy)

Institutional Holding

20.9%

Insider Holding

70.6%

Analyst Consensus

Recommendations

9 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹816

+38.3% vs CMP

Target Range

₹750 – ₹920

Peer Comparison

Company	P/E	ROE
APOLLO HOSPITALS ENTER. L	54.3x	22.0%
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%

Recent News

4 mixed2 general

Healthcare Global Enterprises (HCG) Share Price Falls 5.11% Today

Univest, 09 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Healthcare Global Enterprises Q2FY27 Results: Earnings call set for Nov 6

scanx.trade, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Buy HealthCare Global Enterprises; target of Rs 820: Prabhudas Lilladher

Moneycontrol.com, 05 Oct

Healthcare Global Enterprises Schedules Q1 Earnings Call For August 7

Sahi, 27 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

HealthCare Global posts PAT of Rs 2.17 crore in Q4

Business Standard, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Axis Direct picks 5 smallcap stocks with up to 40% upside potential. How many do you have?

The Economic Times, 04 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Risk

WeakGrowth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑