Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

HealthCare Global Enterprises / Equity Bottom-Up

<ul>
<li>HCG's continued focus on consolidation is leading to improving profitability.  Furthermore, with the normalization of post-COVID environment, elective surgeries and international footfalls are inching back to pre-COVID levels.</li>
<li>Since the onboarding of CVC Capital as the majority shareholder, HCG's capex discipline has been noteworthy. Capex is focused now on driving growth in existing centers vs opening new centers.</li>
<li>We project HCG's PAT to grow to INR 170cr+ by FY25. Valuing HCG at FY25 exit P/E of 47x suggests an IRR potential of 27% over the next 3Y.</li>
</ul>


HCG's continued focus on consolidation is leading to improving profitability.  Furthermore, with the normalization of post-COVID environment, elective surgeries and international footfalls are inching back to pre-COVID levels.
Since the onboarding of CVC Capital as the majority shareholder, HCG's capex discipline has been noteworthy. Capex is focused now on driving growth in existing centers vs opening new centers.
We project HCG's PAT to grow to INR 170cr+ by FY25. Valuing HCG at FY25 exit P/E of 47x suggests an IRR potential of 27% over the next 3Y.


HCG: Consolidation Continues to Boost Profitability

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Rainbow Children's Medicare / Equity Capital Markets

<ul>
<li>Rainbow Children’s Hospital (RCH) raised around US$200m via issuing a mix of primary and secondary shares in its India IPO.</li>
<li>RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.</li>
<li>In this note, we will talk about our the trading updates.</li>
</ul>


Rainbow Children’s Hospital (RCH) raised around US$200m via issuing a mix of primary and secondary shares in its India IPO.
RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
In this note, we will talk about our the trading updates.


Rainbow Children’s Hospital IPO Trading - Decent Anchor, Strong Insti Subs but Limited Upside

<ul>
<li>Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.</li>
<li>RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.</li>
<li>In this note, we will talk about the recent updates and peer comparison.</li>
</ul>


Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.
RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
In this note, we will talk about the recent updates and peer comparison.


Rainbow Children’s Hospital - Recent Updates and Peer Comp

<ul>
<li>HCG continues to improve its profitability led by 1) Scaling up of new centers and 2) Improving operational efficiency in its existing centers. </li>
<li>HCG reported revenue growth of 1.7% QoQ in Q3FY22, despite Q3 being a seasonally weak quarter and despite fell off of COVID related revenues.</li>
<li>As per our projections, HCG has potential to generate annual earnings of 170cr+ by FY25, suggesting an IRR potential of 23%+ over the next 3Y.  </li>
</ul>


HCG continues to improve its profitability led by 1) Scaling up of new centers and 2) Improving operational efficiency in its existing centers. 
HCG reported revenue growth of 1.7% QoQ in Q3FY22, despite Q3 being a seasonally weak quarter and despite fell off of COVID related revenues.
As per our projections, HCG has potential to generate annual earnings of 170cr+ by FY25, suggesting an IRR potential of 23%+ over the next 3Y.  


HCG: Sustained Improvement In Growth and Profitability

<ul>
<li>With new centers scaling up, HCG reported industry leading revenue growth (10% QoQ). With capex cycle behind us, HCG is poised to post strong profitability, cash flow and growth.</li>
<li>Over the past 3 quarters, HCG has been consistently reporting highest-ever revenue. Its Q2FY22 revenue is highest ever in its history, even with exclusion of COVID and vaccination revenues. </li>
<li>HCG also reported its highest ever EBITDA of INR 65cr, leading to positive PAT (excluding non-recurring gains) after a long hiatus of 13 quarters.</li>
</ul>


With new centers scaling up, HCG reported industry leading revenue growth (10% QoQ). With capex cycle behind us, HCG is poised to post strong profitability, cash flow and growth.
Over the past 3 quarters, HCG has been consistently reporting highest-ever revenue. Its Q2FY22 revenue is highest ever in its history, even with exclusion of COVID and vaccination revenues. 
HCG also reported its highest ever EBITDA of INR 65cr, leading to positive PAT (excluding non-recurring gains) after a long hiatus of 13 quarters.


HCG: On Track For Sustainable Growth and Profitability

India

HealthCare Global Enterprises Limited provides medical and surgical hospital services. The Hospital offers cancer care, chemotherapy, cyberknife surgery, surgical, radiation, and medical oncology services. HealthCare Global Enterprises operates worldwide.

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HealthCare Global Enterprises (HCG IN)

HCG: Consolidation Continues to Boost Profitability

HCG's capex discipline is leading to improving profitability. We project HCG's PAT to grow to INR 170cr+ by FY25. Per our estimates, an investment...

Ankit Agrawal, CFA

Rainbow Children’s Hospital IPO Trading - Decent Anchor, Strong Insti Subs but Limited Upside

Rainbow Children’s Hospital raised around US$200m in its India IPO. In this note, we look at the subscription levels and talk about the trading...

Sumeet Singh

Rainbow Children’s Hospital - Recent Updates and Peer Comp

Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO. In this note, we...

Sumeet Singh

HCG: Sustained Improvement In Growth and Profitability

An investment in HCG has potential to generate 23%+ CAGR over the next 3Y as the business scales up to utilize the full potential of its existing...

Ankit Agrawal, CFA

HCG: On Track For Sustainable Growth and Profitability

In line with our thesis, HCG is poised to post strong growth, profitability and cash flows as its new centers scale up. With capex cycle behind us...

Ankit Agrawal, CFA

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