Krsnaa Diagnostics makes tepid stock markets debut, lists 5% higher
Premium- Krsnaa Diagnostics' issue was subscribed 64.38 times with retail participation at 41.95 times
Mumbai: Shares of Krsnaa Diagnostics listed on the stock exchanges at ₹1005.55 on Monday, 5.4% higher than its issue price of ₹954. The issue was subscribed 64.38 times with retail participation at 41.95 times. The company aimed to raise ₹1,213.33 crore via the IPO.
“We believe, the company has robust business model with a cost-competitive advantage. The company has around ₹50 cr ore of debt as on FY21 which would be reduced from the IPO proceeds, thereby reducing the interest liability in future," said analysts at Normal Bang.
Between FY18 and FY21, Krsnaa Diagnostics’ revenues have grown at CAGR of 54% while EBITDA grew by 50%.
Krsnaa Diagnostics Limited is one of the largest differentiated diagnostic service provider in India. It provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele- radiology services to public and private hospitals, medical colleges and community health centres pan-India.
The company operates one of India’s largest tele-radiology reporting hubs in Pune that is able to process large volumes of X-rays, CT scans and MRI scans round the clock and 365 days a year. As of June 30, 2021, Krsnaa Diagnostics had a team of 190 radiologists, 30 pathologists, 8 microbiologists and more than 2,800 qualified professionals including clinicians, technicians and operators.
“In terms of valuation, the company has a price to earnings (PE) of 13.27 and price to book of 11.19 without adjusting for gain on fair value of CCPs (Compulsory Convertible Preference Shares). The company looks fairly valued vis a vis its listed peers con- sidering its scalable model," said Canara Bank Securities.
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