Vijaya Diagnostic IPO: Why brokerages suggest subscribing to the issue Vijaya Diagnostic is the largest integrated diagnostic chain in southern India, offering pathology and radiology testing services mostly in Telangana and Andhra Pradesh. The company's initial public offer opened for subscription on Wednesday, September 01, and the issue is priced between Rs 522-531 per equity share . According to a CRISIL report, the Indian diagnositcs market was value at Rs 71,000 - Rs 73,000 crore in FY21 and is projected to expand at a CAGR of 12 - 13 per cent to Rs 92,000 – 98,000 crore, driven by a rise in health awareness and disposable incomes, increase in demand for better healthcare facilities and quality of care. Going forward, the company plans to deepen footprint in its core markets, supplement organic growth with selective acquisitions and expand adjacent geographies and east India. We believe the company should fetch a premium valuation given its enviable metrics of such as – higher operating income per patient and EBITDA per patient than its peers, high B2C concentration and highest income generation from customers.
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