Vijaya Diagnostic: What does this regional player offer amid industry consolidation?
Going forward, technology will be the differentiator, and Vijay Diagnostic’s differentiated hub- and-spoke model calls for attention
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
Vijaya Diagnostic Centre (VDC; CMP: Rs 619, Market Cap: Rs 6,315 crore) had a near flattish listing, which was better than expectations as the grey market signalled a discount opening. The first trading day on the exchange ended with 16 a per cent gain on the IPO price. Compared to some of the recent listings, this was a lacklustre opening, but the company warrants investor attention for multiple reasons. Regional healthcare penetration play This largest diagnostic chain in southern India is a…