KR Choksey IPO report on Krsnaa Diagnostics
Incorporated in 2011, Krsnaa Diagnostics Ltd or “KDL” is one of the fastest-growing diagnostic chains in India. It offers a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI), routine clinical laboratory tests, pathology, and tele-radiology services to private/public hospitals, medical colleges, and community health centres. The firm has an extensive network of diagnostic centres across India with a key focus on non-metro, and lower tier cities and towns. It currently operates 1,823 diagnostic centres that are offering radiology and pathology services across 13 different cities in India. It also operates one of India’s largest tele-radiology reporting hub in Pune which can process large volumes of X-rays, CT scans and MRI scans round the clock, round the year.
Valuation and Outlook
At IPO’s upper price band of INR 954, company is being valued at 77.9x times earnings, in line with the industry average of 96x. Considering differentiated business model, strong growth prospects, cost competitiveness and sector leadership, we recommend a Subscribe with a long term perspective for KDL’s IPO.
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