Healthcare Global Enterprises Limited (HCG) is a leading healthcare organization in India, renowned for its specialized cancer care and fertility services. Operating under the "HCG" brand, it boasts the largest network of cancer treatment centers in India, licensed by the AERB. Founded in 1989, HCG is one of India's largest oncology hospital chains, supported by a robust infrastructure that places it at the forefront of specialized medical care in the country.
HCG operates a significant network of 25 medical care centers across 19 cities, equipped with state-of-the-art infrastructure including 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs). Beyond its core cancer treatment services, the company also offers fertility treatments under its "Milann" brand. HCG also manages two multispeciality hospitals in Ahmedabad and Bhavnagar, with 118 and 39 operational beds respectively, catering to specialties like cardiology, neurology, orthopaedics, and urology. Furthermore, it provides clinical reference laboratory services across India under the Triesta brand, specializing in oncology, and offers research and development services to pharmaceutical and biotechnology companies.
The company has achieved considerable geographic expansion, with significant milestones including its IPO in 2016, the launch of advanced cancer centers in Baroda and Visakhapatnam, and the acquisition of a majority stake in Cancer Care Kenya in 2017. It also established its first cancer center in Kanpur with 90 dedicated beds and continues to expand with hospitals featuring high-end linear accelerators in Kolkata and Nashik.
As of June 23, 2025, Healthcare Global Enterprises Ltd (HCG) has a market capitalization of ₹7,517.28 Cr, with a reported Market Cap of ₹7,666 Cr for 2025. The company's recent financial performance has shown a mixed trend. For Q4 FY25 (ending March 2025), revenue stood at ₹583.43 Cr and net profit was ₹6.77 Cr. This indicates a substantial revenue base, though the company has faced profitability challenges.
In the quarter ended December 2024, Healthcare Global Enterprises saw a 22.46% increase in net profit to ₹6.98 crore, compared to ₹5.70 crore in the previous year's quarter. Sales also rose by 18.89% to ₹557.55 crore in the same period, suggesting positive operational momentum. However, the Q4 FY25 results presented a notable challenge, with a 65.38% decline in consolidated net profit for the March 2025 quarter, despite an 18.28% rise in sales. This resulted in a 65% decline in Q4 PAT to ₹7.4 crore.
Current valuation metrics reflect market conditions:
- P/E Ratio: 169.27
- P/B Ratio: 8.69
- 52-Week High: ₹639
- 52-Week Low: ₹344.95
The company's financial health shows some areas for improvement, with a low return on equity of 3.98% over the last 3 years.
A significant development for Healthcare Global Enterprises was the announcement in February 2025 of a major strategic partnership with American private-equity giant KKR & Co. KKR will acquire up to a 54% stake in HCG from CVC Asia V for $400 million (approximately ₹3,465 crore). This transaction marks a pivotal moment for the company's future growth.
Under the agreement, KKR will acquire up to 54% of HCG equity from CVC Asia V at ₹445 per share. Upon completion, KKR's total equity stake is expected to range between 54% and 77%. This partnership brings substantial strategic value, with KKR's investment aimed at supporting the development of medical infrastructure and expanding critical oncology services to a wider patient base in India. The collaboration is expected to leverage KKR's global healthcare expertise to enhance HCG's offerings.
Under the new arrangement, Dr. B.S. Ajaikumar, the founder of HCG, will transition to the role of Non-Executive Chairman. In this capacity, he will focus on driving clinical, academic, and research and development excellence within the organization. Chairperson Name: Basavalinga Ajaikumar Sadashivaiah continues to guide the organization's strategic direction.
HCG operates in a rapidly expanding sector, addressing India's critical need for enhanced cancer treatment infrastructure. The country faces a crude incidence rate of 100.4 cases per 100,000 people, with approximately one in nine individuals expected to be diagnosed with cancer in their lifetime. The incidence of cancer is projected to increase by 12.8% by 2025 compared to 2020.
Healthcare Global Enterprises is well-positioned for future growth. The company aims to add nearly 1,000 beds over the next three years, while maintaining EBITDA margins around 19-20%. Revenue growth of 15% is anticipated, driven by both hospital expansion and technological advancements. HCG's commitment to technological advancement remains a key differentiator, with its adoption of technologies like Robotic Surgery and Tomotherapy Treatment Systems paving the way for improved patient outcomes.
Analyst sentiment remains positive despite recent challenges. Prabhudas Lilladher maintains a 'BUY' rating on Healthcare Global Enterprises, with a target price of ₹620. The company is expected to show strong EBITDA growth and operational efficiency, further bolstered by KKR's strategic investment. An estimated 23% EBITDA CAGR is projected over FY25-27E.
The transaction is anticipated to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals. This strategic partnership with KKR, coupled with HCG's strong market position and ambitious expansion plans, positions Healthcare Global Enterprises for sustained growth within India's dynamic healthcare landscape.
