Vijaya Diagnostic IPO Review: Taking advantage of market favouritism
Vijaya Diagnostic IPO Details:
IPO Date: September 1st 2021 to September 3rd 2021
Total Shares for subscription: ~1.85 Crore
IPO Size: Rs. 1,895.04 Cr
Lot Size: 28 shares
Price Band: Rs. 522–531/share
Market Cap: Rs. 5,400 Cr
Recommendation: Strong Avoid; Avoid for listing pop too
About the company Vijaya Diagnostic Centre
Vijaya Diagnostic Centre Limited (VDC) was incorporated on June 5, 2002. VDC is one of the leading integrated diagnostic chains in Telegana.
Vijaya Diagnostic offers pathology and radiology testing services to their customers through their network, which consists of 80 diagnostic centers and 11 reference laboratories across 13 cities and towns in the states of Telangana; Andhra Pradesh; the National Capital Region, and Kolkata.
Vijaya Diagnostic offers a range of approximately 740 routine and 870 specialized pathology tests and approximately 220 basic and 320 advanced radiology tests that cover several specialties and disciplines.
They currently offer RT-PCR testing and/or CT scan for COVID-19 diagnosis across 33 diagnostic centers in 11 cities and towns and COVID-19 vaccination services at their Kolkata and Gurugram diagnostic centers.
Vijaya Diagnostic has 2,325 full-time employees and regular consultants on a retainer basis, including 74 lab doctors, 19 Physicians, 105 radiologists, and 1,027 technical staff and phlebotomists.
Financials of Vijaya Diagnostic Centre
Vijaya Diagnostic earned ~Rs 300–350 Cr sales in the last 3 years with an annual growth rate of 15% CAGR. Its operating profit grew at a faster pace as the company incurs fixed costs and earns higher profit if sales grow faster than fixed costs.
Diagnostic business is an asset-light business with limited investment and costs leading to a very high return on investments. It is reflected in its return on capital employed ratio of 30%+ over the last 3 years.
Management of Vijaya Diagnostic Centre
Dr. S. Surendranath Reddy is the Promoter and Executive Chairman of the company. He has over 19 years of experience with the company.
Sunil Chandra Kondapally is the Executive Director of the company. He has been associated with the company since its incorporation. He has over 17 years of experience in the field of the pharmaceutical industry.
Sura Suprita Reddy is the CEO of the company. She has been associated with the company since its incorporation, she is heading the overall strategy, clinical excellence, operations, and expansion of the company.
MoneyWorks4me Opinion on Vijaya Diagnostic
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