 radiation, medical oncology & surgical treatment.
It follows a partnership model (with HCG holding majority stake). This also helps it achieve faster ramp up in newer centres. As per management, a new HCG centre requires Rs 45-60 crore of capex of which 45-60% account for equipment costs, which is leased by the vendor and is paid by the centre after three years of equipment purchase. Hence, upfront outgo is only Rs 15-20 crore to put up a HCG centre. Each centre typically has eight to nine doctors and two to three physicians. HCG plans to increase its cancer centres to 25 (from 18 in FY17).
HCG’s centre of excellence at Bangalore (32% of overall revenues) registered EBITDA margins of 26.5% in FY17 (HCG blended FY17 margins- 15%) mainly due to its focus on high end healthcare services (robotics, tomography, etc) higher maturity vis-à-vis other HCG centres and better patient mix (medical tourists comprise 20% of overall centre of excellence patients at Bangalore). Going ahead, the management expects new hospitals to move to 22-24% EBITDA margins due to operational efficiencies.
Focus on a single speciality and opening of newer centres on a partnership model with reputed doctors, typically leads to a breakeven of ~12-18 months for each HCG centre.
HCG also owns and operates two cyclotrons, which are used to produce nuclear medicine to cater to its own 13+ CT-PET scanners (FY17) as well as supplying the same to third party scanners.
Going ahead, the management is keen on setting up new HCG and Milann centres in high growth markets and also, expand into Africa through its existing collaboration with CDC, UK.
The management has guided for a capex of Rs 200 crore in FY18. Gross debt was at Rs 442 crore in FY17 of which vendor debt is Rs 196 crore.
A similar sentiment has been expressed by HDFC Securities and Edelweiss.
Will Healthcare Global Enterprises be a 10-bagger like Rain Industries?
It is obvious that our deep interest in Mohnish Pabrai’s stock picks is because Rain Industries blossomed into a mind-boggling 10-bagger before our very eyes.
Also, Mohnish has repeatedly proclaimed that he is not interested in buying any stock which does not have at least a 5-bagger potential.
Prima facie, Healthcare Global Enterprises does appear to have the potential to give multibagger gains given the niche area in which it is operating and the huge scope of opportunity.
However, only time will tell whether the stock is in fact able to live up to the lofty expectations reposed in it!
Not a fan of healthcare stocks.This is one sector we don’t wish that revenues grow exponentially.The same may be said of pharma.Atleast that would be cutting edge research for preventive care.We don’t want hospitals to look into EBITDA when they treat a cancer patient.These should be affordable care for all.
No way to be treated as a potential multibagger in terms of stock price.
I agree. I felt uncomfortable reading this report. It felt like the business model is squeezing money from helpless dying people.
Trading volumes are extremely thin both on NSE and BSE. Just 98 Nos Buy/Sell on BSE and 11000 on NSE. No way one can get to buy decent amount of stock. No use of this recommendation to retail investors.
Revenue growth is depending on new hospital coming on stream, which required Hugh CAPEX.
Even the maintenance capex is 25cr (approx.), which is equal to the PAT for last year. On a PAT of 25cr, it will take the company years to reduce debt, assuming they do not increase the debt considerably in future (which the management has not alluded to).
I have read the management presentation/con-call and the management is constantly referring to Harvard Report (Social Proof), which is great, because they are doing great service to many people by performing same operations which would have taken many people multiple times that amount in developed countries. However, as an investor, I think the stock is trading at rich valuation (PE > 100) and I find it very hard to imagine the significant long-term return on it. I am sure Monish Pabrai is seeing the world differently than me, otherwise, he would not have bought the stock.StockNews.com initiated coverage on shares of First Republic Bank (NYSE:FRC – Get Rating) in a research note issued on Thursday. The brokerage set a “hold” rating on the bank’s stock.
Several other equities research analysts also recently commented on the company. UBS Group reduced their price objective on First Republic Bank from $210.00 to $188.00 and set a “neutral” rating for the company in a report on Tuesday, February 22nd. Barclays lifted their price objective on First Republic Bank from $215.00 to $223.00 and gave the stock an “equal weight” rating in a report on Monday, January 3rd. Morgan Stanley reduced their price objective on First Republic Bank from $212.00 to $173.00 and set an “equal weight” rating for the company in a report on Monday, March 28th. Maxim Group reiterated a “buy” rating and issued a $250.00 price objective on shares of First Republic Bank in a report on Friday, January 14th. Finally, JPMorgan Chase & Co. lifted their price objective on First Republic Bank from $240.00 to $250.00 and gave the stock an “overweight” rating in a report on Wednesday, December 15th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $202.20.
Shares of NYSE:FRC opened at $161.93 on Thursday. First Republic Bank has a 1-year low of $155.67 and a 1-year high of $222.86. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.94 and a quick ratio of 0.94. The business has a fifty day moving average price of $168.75 and a 200-day moving average price of $192.94. The company has a market capitalization of $28.55 billion, a PE ratio of 21.11, a PEG ratio of 1.18 and a beta of 1.15.
First Republic Bank (NYSE:FRC – Get Rating) last issued its quarterly earnings results on Friday, January 14th. The bank reported $2.02 earnings per share for the quarter, beating the consensus estimate of $1.92 by $0.10. First Republic Bank had a return on equity of 12.82% and a net margin of 27.86%. The firm had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same period last year, the company earned $1.60 earnings per share. The company’s revenue was up 27.3% on a year-over-year basis. On average, sell-side analysts anticipate that First Republic Bank will post 8.19 earnings per share for the current fiscal year.
Several hedge funds have recently bought and sold shares of the company. Mascoma Wealth Management LLC purchased a new position in First Republic Bank in the 4th quarter worth approximately $26,000. SouthState Corp purchased a new position in First Republic Bank in the 3rd quarter worth approximately $29,000. Bank Julius Baer & Co. Ltd Zurich purchased a new position in First Republic Bank in the 4th quarter worth approximately $32,000. Arlington Partners LLC purchased a new position in First Republic Bank in the 4th quarter worth approximately $39,000. Finally, Evoke Wealth LLC increased its stake in First Republic Bank by 39.0% in the 3rd quarter. Evoke Wealth LLC now owns 214 shares of the bank’s stock worth $41,000 after acquiring an additional 60 shares during the last quarter. 94.20% of the stock is currently owned by hedge funds and other institutional investors.Home > News > Doing the double at the Sabres!
Our campaign to launch the PlayStation 5 has scooped two awards at this year’s SABRE EMEA Awards!
Reimaging the world-renowned London Underground signs at Oxford Circus to feature PlayStation’s four iconic shapes was one of last year’s most talked-about marketing activations.
So it’s fantastic to have the campaign recognised by winning the Consumer Electronics Award and Best In Live Events Award.Average monthly expenses for this facility are around $8,430. This is higher than the Kent average of $7,316. The average estimated cost in the State of Washington is approximately $6,001, which is greater than the nationwide average of $4,978.
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