The key strength of Vijaya Diagnostic lies in its heavy B2C mix – more than 90 per cent of business flows from individual customers. This ensures that the company has almost negligible receivables which helps it to maintain a negative working capital.
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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
The IPO of Vijaya Diagnostic Centre Ltd (VDCL) adds to the deluge of IPOs in the recent past. While such IPOs keep investors sceptical on pricey valuation and the exit of private equity players, some of them garner attention due to the differentiated business model and/or an underlying theme. This IPO from the largest integrated diagnostic chain in southern India point towards one such theme – regional healthcare/diagnostic providers and their increasing reach in under-penetrated hinterland. In this context, the recent…
