Brokerage firm Prabhudas Lilladher has maintained its ‘Buy’ rating on HealthCare Global Enterprises with a target price of Rs 820. The firm cites a projected 24% EBITDA growth by fiscal year 2028, driven by operational improvements following the KKR investment.
Brokerage firm Prabhudas Lilladher has kept its ‘Buy’ rating on HealthCare Global Enterprises (HCG) with an unchanged target price of Rs 820 per share. This positive outlook is based on the expectation that the oncology-focused hospital chain will see a 24% compound annual growth rate (CAGR) in its EBITDA, or core operating profit, between fiscal years 2026 and 2028. As of October 1, 2026, the company’s stock closed at Rs 668.75.
The brokerage’s confidence is largely pinned on the strategic influence of KKR, which acquired a controlling stake of 53.84% in the company in June 2025. According to the analyst report, this partnership is acting as a catalyst for greater financial and operational discipline. The company is currently focusing on expanding its existing facilities, known as brownfield expansion, rather than just adding new hospitals, which is expected to help optimize capacity utilization and improve overall margins.
HealthCare Global currently operates with EBITDA margins of around 18%, a figure that has historically trailed those of its industry peers. Prabhudas Lilladher anticipates that as the company refines its payor mix—the types of insurance and payment sources it accepts—and optimizes its case mix, it will be able to narrow this margin gap. The valuation used by the brokerage for the target price stands at approximately 22 times the projected pre-IND AS EV/EBITDA for the 2028 fiscal year.
While the outlook remains optimistic, there are specific risks that investors should consider. The company’s growth plan relies heavily on the successful execution of its expansion projects. Any delays in commissioning these facilities or challenges in scaling margins within a highly competitive private healthcare market could impact financial performance. Furthermore, the healthcare sector is sensitive to regulatory changes and shifts in demand, which can influence stock volatility. The company’s ability to manage its debt levels while funding these expansions will also remain an important metric for shareholders to monitor in the coming quarters.
Looking ahead, investors will be closely watching for signs of sustained margin improvement in upcoming quarterly results, as this will be a key indicator of whether the company is successfully implementing its operational efficiency plans. The speed at which HCG can ramp up utilization in its expanded facilities will also likely dictate the stock's performance in the medium term.