Vijaya Diagnostic Centre Ltd. share price target

Vijaya Diagnostic’s (Vijaya) Q2FY26 performance was weaker than our expectations due to a slowdown in core markets of Hyderabad (+3% YoY). Pathology revenue grew at a modest pace of 5.1% YoY on a high base of last year and a slowdown in footfalls due to early festive season.

Vijaya’s Q4FY25 results were a slight miss on our estimates (2%/3% on sales/EBITDA) due to industry-level headwinds (extended festivities in South India), capacity constraints in Pune centers, and gross margin contraction.

Vijaya Diagnostic Centre’s (Vijaya) Q1FY25 performance was ahead of our expectations. Base business grew at 19.6%driven by 16.6% YoY rise in patient footfall and 19.8% YoY jump in number of tests while EBITDA grew 17% YoY.

Vijaya Diagnostic Centre’s (Vijaya) Q2FY24 result was a beat vs our estimates driven by 18.3% YoY growth in non-covid business. Test volume growth remained healthy at 18.7% YoY. In Q2, it commercialised a new hub in Kolkata; the company is witnessing good traction and expects the hub to breakeven in next three quarters.

Vijaya’s Q1FY24 performance beat our estimates driven by 19.2% YoY growth in non covid business. Test volume growth remained healthy at 17.5% YoY, aided by improvement in footfalls in the company’s mature and newer centres. Centres at Panjagutta and Rajamundhry have started gaining traction while Tirupati hub is expected to scale up in the coming quarters.

Vijaya Diagnostic Centre’s (Vijaya) Q4FY23 performance was driven by a steady 22.4% YoY growth in non-covid business, while covid business’ contribution fell to 1% (15% in Q4FY22). Overheads of new centres impacted EBITDA margin to a small extent though, at 40.6% in Q4, it continues to be better than that of most of listed peers.

Vijaya Diagnostic Centre’s (Vijaya) Q3FY23 performance was broadly in line with our estimates. Revenues grew 2.1% YoY (-6.3% QoQ) to Rs1.1bn (I-Sec: Rs1.1bn). Covid revenues were negligible during the quarter. EBITDA margin declined 120bps QoQ to 39.1% (I-Sec: 38%) due to negative operating leverage.

Vijaya Diagnostic Centre’s (Vijaya) Q2FY23 performance was broadly in line with our estimates. Revenue grew 7.1% YoY and 15.7% QoQ to Rs1.2bn (I-Sec: Rs1.2bn).

Vijaya Diagnostic Centre’s (Vijaya) Q1FY23 performance was broadly in line with our estimates with revenue declining 14.9% YoY to Rs1.0bn (I-Sec: Rs1.0bn) on a high covid base.

Vijaya Diagnostic (Vijaya) is one of the largest integrated diagnostic chains in southern India and is primarily based in Andhra Pradesh and Telangana. Other factors that differentiate Vijaya from other diagnostic chains are: 1) ~92% of business is its B2C (provides stickiness) and 2) it offers a comprehensive basket of diagnostic services in both pathology and radiology

Long track record of delivering consistent profitable growth For FY21, Vijaya recorded a total income of | 388.5 crore, representing a CAGR of 13.26% for FY19-20. The operating revenue per test was | 428 while OPBDIT per test was | 168 for FY20 while operating revenue per customer was | 1,214 and OPBDIT per customer was | 475 for FY20. Vijaya's...

Vijaya Diagnostic Centre Ltd. (VDCL) is the largest integrated diagnostic chain in southern India, by operating revenue, and also one of the fastest-growing diagnostic chains by revenue for FY20. The company offer an onestop solution for pathology and radiology testing services to their customers through extensive operational network, which consists of 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana, Andhra Pradesh, the National Capital Region and Kolkata as on June 30, 2021. For Q1FY22 and FY21, the company derived 95.91% and 96.20% of revenue from operations from the core geographies, Hyderabad and rest of Telangana and Andhra Pradesh. VDCL offers a comprehensive range of approximately 740 routine and 870 specialized pathology tests and approximately 220 basic and 320 advanced radiology tests that cover a range of specialties and disciplines, as of...

Vijaya Diagnostic Centre was incorporated in 2002, Company is the largest integrated diagnostic chain in southern India. Vijaya Diagnostic provides integrated services of pathology and radiology, company offers around 740 routine tests, 870 specialize pathology tests, 220 basic tests, and 320 advanced radiology tests. Vijaya diagnostic network consists of 80 diagnostic centers and 11 reference

Vijaya Diagnostic Centre Limited IPO Note Issue Open: Sep 01 Sep 03 2021 Price Band: Rs. 522 531 (Discount of Rs 52 for eligible Employees) *Issue Size: 35,688,064 eq shares (Entirely Offer for sale ) Issue Size: Rs.1862.92 1895.03 cr Reservation for: QIB Upto 17,769,031 eq sh Non Institutional atleast 5,330,710 eq sh Retail atleast 12,438,323 eq sh Employee Reservation : 150,000 eq sh

IPO NOTE