Should we apply?
Vijaya Diagnostic Center Limited IPO
1. They are the largest integrated diagnostic chain in southern India, by operating revenue, and also one of the fastest-growing diagnostic chain by revenue for fiscal year 2020.
2. They have 81 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh and in the National Capital Region and Kolkata as on June 30, 2021
3. 96% revenue comes from Andhra and Telengana Region.
4. They offer 740 routine and 870 specialized pathology tests and approximately 220 basic and 320 advanced radiology tests that cover a range of specialties and disciplines.
Strengths of Vijaya Diagnostic
1. Largest and fastest growing diagnostic chain with dominant position in south India
2. High brand recall driving high individual consumer business share and customer stickiness
3. Dedicated management team with significant industry experience.
Industry Analysis of Vijaya Diagnostic
1. Indian diagnostics market was valued at approximately ₹ 710 billion to ₹ 730 billion in the fiscal year 2021. And, is projected to grow at CAGR of around 12% to 13% to reach approximately ₹ 920 billion to ₹ 980 billion by fiscal year 2023.
2. The diagnostics market in Telangana and Andhra Pradesh, is projected to grow to approximately ₹ 120 billion to ₹ 130 billion by fiscal year 2023.
3. Standalone centres dominate the Indian diagnostic market with approximately 45% to 50% market share, while hospital-based centres have approximately 35% to 40% market share for the fiscal year 2020. Diagnostic chains have approximately 12% to 17% market share for the fiscal year 2020.
Risk in the business of Vijaya Diagnostic
1. A significant portion of the operations are concentrated in the states of Telangana and Andhra Pradesh in south India.
2.The diagnostics industry in India is highly competitive with several companies present in the market, and therefore it is challenging to improve market share and profitability.
Objects of the Vijaya Diagnostic Center Limited IPO:
Vijaya Diagnostic Center Limited IPO Details:
|Open Date:||Sep 01 2021|
|Close Date:||Sep 03 2021|
|Face Value:||₹ 1 Per Equity Share|
|Issue Type:||Book Built|
|Issue Size:||1895 Cr.|
|Lot Size:||28 Shares|
|Issue Price:||₹ 522 - 531 Per Equity Share|
|Listing Date:||Sep 14 2021|
Promoters And Management:
Financials of Vijaya Diagnostic Center Limited IPO:
|Particulars (in Cr.)||Mar-21||Mar-20||Mar-19|
|Changes in Inventories||0||0||0|
|Employee Benefit Expenses||57||62||53|
|Profit before tax||111||84||66|
|No. of shares||10||10||10|
|EPS in Rs||8.40||6.40||4.70|
Comparison With Peers:
|Lal Path labs||1581||577||30%||292||18.47%||35%||80||100%|
Recommendation on Vijaya Diagnostic Center Limited IPO:
Lead Manager of Vijaya Diagnostic Center Limited IPO:
Registrar of Vijaya Diagnostic Center Limited IPO:
Discussion on Vijaya Diagnostic Center Limited IPO:
Shareholders of Lal Path Lab and Metropolis has made good returns in the last 3 years in the diagnostic shares.
Problem with Private Equity selling in the IPO is, they try to get maximum value in the stock..
Very good company……Vijaya Diagnostic looks a very good company….But again nothing much left on table……
Coming at P/E of 62…. While Metropolis is available at 56 and Lal Path lab at 80…..
40 ke P/E pe lata toh aag lagata. .
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