Suraksha Diagnostic IPO: Hey investors! Have you heard any update regarding the Suraksha Diagnostic IPO to come? Now would be your chance to place your bet in one of the finest diagnostic service-providing companies from the East side of India. Subscription through the IPO is planned between 29th November 2024 and 3rd December 2024. Henceforth, to enable you to get the update and then accordingly decide if it’s worthy, here is the concise write-up. Stay connected throughout the article!
Key information in an IPO is:
- Fully an Offer for Sale (OFS), with about 1.91 crore equity shares to be sold. No fresh equity shares issuance.
- The IPO is gonna cost between ₹420 and ₹441 a share.
- The approximated total size of the issue is between ₹805.95 and ₹846.25 crore.
- Lot Size: You need to invest at least ₹14,994 and can place bids in multiples of 34 shares.
- So, they are witnessing the shares hitting public markets on the NSE and BSE on December 6, 2024.
About Suraksha Diagnostic:
Established in 2005, Suraksha Diagnostic is a well-known brand in the diagnostic industry in Eastern India. The business offers a wide range of services, including radiological and pathological testing in addition to medical consultations. Over 5.98 million tests were performed in FY2024, serving 1.14 million patients in Assam, Bihar, and West Bengal. Leading institutions like CAP and NABL have granted approval to their labs and diagnostic centers, demonstrating their dedication to excellence.
Highlights of Finance:
Suraksha Diagnostic has demonstrated significant financial expansion:
- After declining in FY2023, revenue reached ₹218.71 crore in FY2024.
- In FY2024, net profit was ₹23.13 crore, which shows better margins than FY2023’s ₹6.07 crore.
- Debt: Better financial health is indicated by the debt-to-equity ratio, which decreased from 0.37 in FY2022 to 0.20 in FY2024.
Industry Potential:
The Indian diagnostics market would be about ₹1,275-₹1,375 billion by FY2028 with a yearly growth from FY2024’s roughly ₹860-₹870 billion at an annual rate of 10% -12%. Suraksha will be greatly affected in this as they have huge support in Eastern India that includes the area where they reside which will grow between the lines of 10.5% to 12.5%.
- Contingent Risks in Dependence on East India: Earnings from the company are primarily coming from West Bengal. Disruptions there can have major repercussions on earnings.
So, quite a lot of competition here in the diagnostics industry. The big players, namely Metropolis Healthcare and Dr. Lal PathLabs, are holding on to the major market shares.
- Expensive Valuations: This IPO cannot be considered as good as the rest since it has a much higher price-to-earnings (PE) ratio of 94.81.
Should you subscribe?
If you are looking for a stock that has a strong regional presence and growth potential, Suraksha Diagnostic might be good for your portfolio. The risks, however, come in the form of high valuations and dependence on a single region. Thus, you must assess your investment horizon and risk appetite before subscribing.
Also, remember to update listings on December 6, 2024. And watch how this IPO does in a tough market! Until then stay tuned with us for more updates and investment tips!
Suraksha Diagnostic IPO
