Why HCG Beats Apollo & Fortis | Patient-For-Life Model & Cheap Valuations

Healthcare Global Enterprises (HCG) is a super-conviction stock with a significant 16% weight in the healthcare portfolio, and here’s why. Unlike multispecialty hospitals that must continuously acquire new patients each year, HCG operates exclusively in oncology, where cancer patients are long-term chronic patients. This ensures a stable and growing patient base every year, creating stronger visibility of revenue. Cancer is also among the fastest-growing disease segments in India, expanding the addressable market rapidly. From a valuation perspective, HCG trades at ~30x trailing cash flows, while larger multispecialty peers like Apollo, Max, and Fortis trade at 50–80x, making HCG a value buy with superior growth potential. Additionally, private equity ownership aligns incentives toward shareholder value.