ICICI Securities analysis report on Vijaya Diagnostic Centre
Vijaya Diagnostic Centre (Vijaya) has acquired 100% stake in Pune-based PH Diagnostic Centre Personal Restricted (PH) for a money consideration of INR 1,475mn (together with INR 128mn for debt compensation). The enterprise dynamics of PH Diagnostic are an identical to Vijaya and might be swiftly built-in. Apart from, PH’s skill of excessive finish testing pertaining to allergy and genomic can also add new capabilities to the mixed portfolio. The acquisition additionally addresses issues on replicating Vijaya’s enterprise mannequin past Andhra/Telangana area because the share of those areas might come all the way down to 89% in FY25E vs ~97% presently. We increase our EBITDA for FY24/25E by 2-8% to issue on this acquisition.
Outlook
The inventory trades costly at 21.8x FY25E EV/EBITDA, we retain our REDUCE suggestion. Nonetheless, we increase goal value to INR 590.
For all suggestions report, click on right here
Disclaimer: The views and funding ideas expressed by funding specialists/broking homes/score businesses on moneycontrol.com are their very own, and never that of the web site or its administration. Moneycontrol.com advises customers to verify with licensed specialists earlier than taking any funding selections.
Vijaya Diagnostic Centre – 23 – 12 – 2023 – isc
