Vijaya Diagnostics Centre 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
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.