While IPO gets everyone excited, for a new player will grace the arena, giving investors more scope to reap on their calculated risks, there’s always scope for more clarity and information that would make it simpler for investors all over the country to chip in their funds; and what better way to build trust than word of mouth?
Here’s what market veterans had to say –
Angel Broking - Â Given the company has strong growth potential and would continue to enjoy pricing power in the long run, only long term investors should subscribe to the issues.Â
SPA - At the issue price band of INR 218, the stock is available at EV/EBIDTA of 23.8x based on FY16E annualised earnings. It’s nearest comparable like Apollo Hospitals and Narayana Hrudayalaya are trading at EV/EBIDTA of 25.7x and 34.2x respectively based on FY16E earnings. We recommend investors to SUBSCRIBE the issue.
Axis Bank - HCG also provides fertility treatment under the Milann brand. They acquired 50.10% equity interest in BACCHealthcare in 2013 which operates fertility centres under the Milann brand, through itself and its wholly-ownedsubsidiary, DKR Healthcare. Pursuant to this acquisition, HCG now operates 4 Milann fertility centres in Bengaluru. During the six months ended September 30, 2015 and Fiscal Years 2015 and 2014, the Milann fertility centres registered 5,575, 8,027 and 7,617 new patients and performed 679, 1,111 and 932 IVF procedures, respectively.
ICICI - 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.
Aditya Birla – At the higher price band of `218, the stock is valued at ~3.5x of its FY15 consolidated sales. Given its proven management background, niche segment of operations, strong expansion plans and opportunities present in the healthcare industry in India, we recommend “Subscribe†on HCG IPO for long term investors as the Company is on the course of aggressive expansion, benefits of which can be seen in the medium to long term period.
Monarch Newton Capital - We compared HCG’s valuation with leading hospital companies’ viz., Apollo Hospitals (Apollo), Narayana Hridayalaya (Narayana) and Fortis Healthcare (Fortis). As per Bloomberg Consensus estimates, average EV/EBITDA multiple of Apollo, Narayana and Fortis is at 20.9x and 16.9x FY17E/FY18E, which provides good scope for an upside to HCG’s share price post listing. We recommend a “SUBSCRIBE†to the initial public issue of HCG.
Choice Equity Broking - Given the strong fundamentals of the company in the highly lucrative healthcare industry, we feel that the premium EV/EBITDA valuation is justified. Considering a long term view, we recommend a “SUBSCRIBE†rating for the public issue.
Here’s what market veterans had to say –
Angel Broking - Â Given the company has strong growth potential and would continue to enjoy pricing power in the long run, only long term investors should subscribe to the issues.Â
SPA - At the issue price band of INR 218, the stock is available at EV/EBIDTA of 23.8x based on FY16E annualised earnings. It’s nearest comparable like Apollo Hospitals and Narayana Hrudayalaya are trading at EV/EBIDTA of 25.7x and 34.2x respectively based on FY16E earnings. We recommend investors to SUBSCRIBE the issue.
Axis Bank - HCG also provides fertility treatment under the Milann brand. They acquired 50.10% equity interest in BACCHealthcare in 2013 which operates fertility centres under the Milann brand, through itself and its wholly-ownedsubsidiary, DKR Healthcare. Pursuant to this acquisition, HCG now operates 4 Milann fertility centres in Bengaluru. During the six months ended September 30, 2015 and Fiscal Years 2015 and 2014, the Milann fertility centres registered 5,575, 8,027 and 7,617 new patients and performed 679, 1,111 and 932 IVF procedures, respectively.
ICICI - 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.
Aditya Birla – At the higher price band of `218, the stock is valued at ~3.5x of its FY15 consolidated sales. Given its proven management background, niche segment of operations, strong expansion plans and opportunities present in the healthcare industry in India, we recommend “Subscribe†on HCG IPO for long term investors as the Company is on the course of aggressive expansion, benefits of which can be seen in the medium to long term period.
Monarch Newton Capital - We compared HCG’s valuation with leading hospital companies’ viz., Apollo Hospitals (Apollo), Narayana Hridayalaya (Narayana) and Fortis Healthcare (Fortis). As per Bloomberg Consensus estimates, average EV/EBITDA multiple of Apollo, Narayana and Fortis is at 20.9x and 16.9x FY17E/FY18E, which provides good scope for an upside to HCG’s share price post listing. We recommend a “SUBSCRIBE†to the initial public issue of HCG.
Choice Equity Broking - Given the strong fundamentals of the company in the highly lucrative healthcare industry, we feel that the premium EV/EBITDA valuation is justified. Considering a long term view, we recommend a “SUBSCRIBE†rating for the public issue.
