Health.Global (HCG)
TurnaroundFairStock Score: 10/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹714.3 |
| Market Cap | ₹10,664.66 Cr |
| P/E Ratio | 454.97 |
| ROCE | 8.56% |
| ROE | 1.9% |
| Dividend Yield | 0% |
| Profit Growth | 61.74% |
| Debt/Equity | 1.23 |
| Sales Growth | 15.28% |
| Promoter Holding | 63.77% |
| 52-Week Range | ₹513.3 — ₹804.65 |
| Sector | Healthcare Services |
| Book Value | ₹92.07 |
Strengths
- Sales growth of 13.34% shows revenue momentum
- Promoter holding of 63.77% aligns management with minority shareholders
- Latest quarter sales of ₹633 Cr indicate meaningful scale
- Positive book value of ₹85.31 provides some asset backing
Concerns
- Latest quarter net loss of ₹-8 Cr and profit growth of -116.76% show deteriorating earnings power
- P/E of 298.31 and PEG of 22.36 imply valuation far ahead of fundamentals
- Debt/Equity of 1.78 and ROE of 1.90% signal high financial risk and poor returns
- Zero dividend yield and Piotroski F-Score of 4/9 offer little comfort to shareholders
AI Analysis
This is not the kind of business I would buy at ₹570.05. Market cap is ₹8,117 Cr, yet the company earns almost nothing: P/E is 298.31 and profit growth is -116.76%. The latest quarter tells the real story: sales of ₹633 Cr but a net loss of ₹-8 Cr. Benjamin Graham would say there is no margin of safety when you pay nearly 300 times earnings for a company that is losing money. Book value is ₹85.31, so paying 6.68 times book means you are paying a rich premium for tangible assets that are not generating acceptable returns. ROE is just 1.90% and ROCE is 8.56%, while debt-to-equity sits at 1.78. That combination is dangerous: high leverage, weak profitability, and zero dividend yield. The Piotroski F-Score of 4/9 reinforces the weak fundamental health. Sales growth of 13.34% is decent, and promoter holding of 63.77% does align interests, but growth is worthless if it never reaches the bottom line. The 52-week range of ₹513.30 to ₹804.65 shows how uncertain the market is about this business. This could be a turnaround story, but a value investor must wait for proof: consistent net profits, rising ROE, and lower debt. At a PEG of 22.36, expectations are far too high for a hospital business that is currently unprofitable. Price is what you pay, earnings are what you get. Right now, the earnings are simply not there.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer