Vijaya Diagnostics: Price stability adds to constructive take

We see Vijaya Diagnostics as a good proxy for regional health-care services consumption play

Anubhav Sahu
December 06, 2022 / 02:01 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights Sequential improvement in operating metrics Pricing holding up; gradual uptick in non-COVID revenue Regional focus with hub-and-spoke model to guide medium-term growth Key watch for margins: high-end radiology tests, wellness packages and expansion Vijaya Diagnostics (VDC; CMP: Rs 467; Market Cap: Rs 4,770 crore) has posted a sequential improvement in Q2FY23 numbers. We recently turned positive on the company with the understanding that quality affordable services with a range of offerings should be a key differentiator rather than just pricing. What helps in this...