Vijaya Diagnostics Centre IPO : Should you subscribe?

Vijaya Diagnostic IPO - Should you subscribe

The Vijaya Diagnostics IPO opens for subscription on 1st Sept 2021.

About Vijaya Diagnostics

Vijaya Diagnostic Centre Ltd. is the largest integrated diagnostic chain in southern India. It is also one of the fastest growing diagnostics chains. The company offers a one-stop solution for pathology and radiology testing services.

The company has 81 diagnostic centers and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, and NCR and Kolkata. Also read Bank holidays in September 2021

Vijaya Diagnostics Centre IPO details

Size of IPO : ₹1,895.03 crores

Subscription dates : 01st September 2021 to 03 September 2021

Price band : ₹522-₹531

Lot size : 28 shares

Value of 1 lot : ₹14,868 at upper price band

Maximum lots per person : A retail investor can apply for 13 lots. This would cost ₹193.284 at the upper price band.

What do experts say about the IPO?

“At the IPO’s upper price band of Rs 531, Vijaya Diagnostic Centre is being valued at 64.3x earnings, offering a potential upside relative to the industry average of 89x. Considering strong brand recall, integrated model, high share of B2C, customer stickiness and sector leadership in southern India, we recommend a subscribe with a long term perspective for IPO.” – KRChoksey

Financials

The revenue has grown considerably from ₹302.94 crores in 2019 to ₹388.59 crores in 2021. For the three months ended June 2021, the company has posted a very respectable revenue of ₹125.97 crores.

The Profit After Tax (PAT) nearly doubled from ₹46.27 crores in 2019 to ₹84.91 crores in 2021. For the three months ended June 2021, the company has posted a very promising PAT of ₹33.33 crores.

Vijaya Diagnostics IPO : Should you subscribe?

Considering the valuation of the company and its strong financials, several analysts have assigned the IPO a SUBSCRIBE rating. Moderate listing gains and strong wealth creation opportunity over the long term is expected.

You can apply for the IPO here.

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