Krsnaa Diagnostics Q1 Results Review - Strong Growth But Weaker Than Expectations: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Krsnaa Diagnostics Ltd.’s Q1 FY25 revenue (Rs 1,702 million) and Ebitda (Rs. 427 million) were below expectations. Revenue was up 22% YoY and 2.4% QoQ. The company has also softened its growth guidance to 25% for the year versus 30% earlier. The court decision regarding the Rajasthan project is still awaited and a favorable ruling can meaningfully alter the growth opportunity going forward. The capex during the year is expected to be around Rs 1,400 million (~20% of sales versus 25% of sales in FY23). Revenue run rate should strengthen in coming quarters as centers in Maharashtra and Madhya Pradesh operationalize, projects in Assam and Orissa continue to show positive traction and their B2C venture contributes meaningfully to its top-line and margins. The older centers of Krsnaa operate at a ~38% margin compared to the newer centers (~12-14%). The new centers have a mix of radiology and pathology revenues as compared to the old centers which primarily focus on the radiology services. As these new centers start to mature in the coming quarters, Krsnaa will see its margin profile improve. While new centers will keep coming up every quarter, its proportion in the overall mix should reduce as the topline scales up. We maintain our target PE multiple of 22 times FY26E earnings per share and recommend a Buy on Krsnaa at current market price with a target price of Rs 841..Click on the attachment to read the full report:.Vijaya Diagnostics Q1 Results Review - Core Growth Unlikely To Accelerate Further: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Krsnaa Diagnostics Q1 Results Review - Strong Growth But Weaker Than Expectations: Systematix

While new centers will keep coming up every quarter, its proportion in the overall mix should reduce as the company's topline scales up, says the brokerage.

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Krsnaa Diagnostics Q1 Results Review - Strong Growth But Weaker Than Expectations: Systematix

While new centers will keep coming up every quarter, its proportion in the overall mix should reduce as the company's topline scales up, says the brokerage.

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