Vijaya Diagnostics Q3 Results Review - Rangebound Margin Despite Healthy Growth: Yes Securities

Yes Securities Report

Vijaya Diagnostics Center Ltd. reported in line revenues while margin was slightly ahead; company merged PH Diagnostic after the acquisition was completed in late December 2023. Management expects to stick to its 15 centre addition target in FY25 which would likely keep margin in a range of 41-42% over next two years.

So far, the hubs added in FY23 and FY24 have been on track for break even time line as outlined earlier which implies healthy footfall ramp up at these new hub locations.

We trim FY24 estimate on back of lower than expected patient footfall (though tests volume is in mid-teens) so far and also factor in one-off acquisition related cost. Incorporate full year sales of PH Diagnostic in FY25 though trimmed base of FY24 means there is no change to FY25 estimates.

Roll over to FY26 estimates with unchanged 35 times target earning price and revised target price Rs 610 (earlier Rs 560).

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