Healthcare Global Enterprises Shows Strong Profit Growth Amid Debt Challenges and Modest Sales Expansion

Jan 27 2025 07:14 PM IST
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Healthcare Global Enterprises has recently adjusted its evaluation, highlighting its improved financial position in the Hospital & Healthcare Services sector. The company has shown significant growth in operating profit and cash flow, while maintaining positive performance over the last three quarters, despite facing challenges related to debt and modest sales growth.
Healthcare Global Enterprises has recently undergone an evaluation adjustment, reflecting a nuanced perspective on its financial standing within the Hospital & Healthcare Services industry. The company has demonstrated a positive trajectory in its operating profit, which has grown at an annual rate of 35.91%. This growth is underscored by a robust operating cash flow, reaching its highest at Rs 284.58 Cr, and a notable return on capital employed (ROCE) of 8.60%.

In terms of performance consistency, Healthcare Global has reported positive results for the last three consecutive quarters, with a profit after tax (PAT) of Rs 48.09 Cr over the nine-month period. The stock has also shown a market-beating performance, generating a return of 39.42% over the past year and outperforming the BSE 500 index across various time frames.

However, the company faces challenges, including a high debt-to-EBITDA ratio of 4.09 times, indicating a lower capacity to service its debt. Additionally, net sales growth has been more modest, with an annual rate of 14.16% over the last five years. These factors contribute to a complex evaluation landscape for Healthcare Global Enterprises.

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