Vijaya Diagnostics

Any views on Vijaya Diagnostics .

The company made a big splash with their IPO in 2021.
But the diagnostics wen into COVD growth spike and consequent overvaluation.

Since then it has been derated and Vijaya went below IPO price .
Now it seems to be making a comeback with Marcellus Capital taking a position and Saurabh Mukherjee with his usual ebullience rating the company a regional leader

Any opinions in the forum. Does being a regional leader make a difference. Company s well known in Andhra and Telangana


Malolan R

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Sir, subject to my memory, when the IPO of Dr. Path Lab came, they were mainly in north India. Further, they expanded in other regions by buying out the local player and took under their umbrella. I hope that Vijaya may increase in the neighboring states as the brand has gained sufficient reliance. The most prominent threat seems the operation of diagnostic business by multi speciality hospitals as the patient cannot go outsides fot diagnostic procedures.
Also, they have very sophisticated equipments which may gain further attention.

Dis: Holding both stated companies.

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Thanks … it looks like all hospitals wont be able to penetrate Diagnostics. Diagnostics player who are working on radiation based therapy have to invest lots of capex and in some smaller locations it is difficult to achieve break even. This centralized model envisaged and touted by Thyrocare and Dr Lal Path Labs can only work for certain tests. It is also becoming clear that the digital app based players and fit bit type start ups will struggle to get traction in diagnostics. If company price tests responsibly with out any predatory pricing … expect Vijaya Diagnostics to do well . SRL and Apollo are hospital based diagnostics players which need watching out.

Any other contrarian vews would be welcome

Malolan R

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Why not look at krsnaa ,not only is it available at a lower P.e multiple but also has past record of high cagr and growth guidance given by managment been expected to remain pretty high.


I am of the same opinion and have invested in Krsnaa Diagnostic in Sept 22- this was before Saurabh Mukherjee’s announcement of Vijaya diagnostic entry in his portfolio. Vijaya is targeting metros where as Krsnaa Diagnostic is bit different. My take is potential exists for both diagnostic chains to overlap significantly if not now, later.

There is significant upside in Krsnaa, so is the risk as well relative to Vijaya.
Vijaya’s market cap is 4k crore with face value Rs. 1
Krsnaa 's market cap is 1.3k crore with face value of Rs. 5

See this pictorial representation to understand various reputed players in the diagnostic industry. The snap is from last years Krsnaa 's presentation. Hope this brings in more clarity

Do see this post from @harshitgoel on VP as well on Krsnaa’s board

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How the face value and market cap are relatable? In my humble opinion, the customers have very strong reliance on Vijaya. Not aware fully about Krsnaa diagnostic. I hope this sector will move from unorganized to organised in long run.Even, Dr. Pathlabs became a multi bagger from its ipo days.

I will update post Q3 results … Lets see if this company suprises on positive side

Disappointing Q3 results…net sales down 2%, net profit down 35%

Yes it was a disappointing miss… Lets hope they make it up next quarter

I have a question about these company that if the industry itself growing at 13-14 % CAGR .
And the Number of centre growing by 15.91% (Between 2019 to 2022 ) of these company
So if we calculate the test then number of test per centre is declined by 5.05%.

And they said that diagnostic chains gains market share of standlone laboratories.
( And they have very high quality infrastructure and customer relation)
How they grew at only at industry average despite expansion through new centres.

So can anybody tell me that their mature centre are growing at which rate ???

Detailed analysis of vijaya diagnostic
Rate the analysis

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“With effect from 01 January 2023, the Company has changed its method of depreciation on all Property, Plant and
Equipment from Written Down Value (“WDV”) method to Straight Line Method (“SLM"), based upon the technical
assessment of expected pattern of consumption of the future economic benefits embodied in the assets.
Due to the aforesaid change:
o The depreciation expense is lower by Rs. 388.7 Mn for the full year ended March 31, 2024.
o The Profit after tax (PAT) is higher by Rs. 290.8 Mn for the full year ended March 31, 2024.
does that mean pat yoy is almost slightly same after dedicting 29 cr from 120 cr

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