Vijaya Diagnostic Hits Record High As Brokerages Raise Price Target Post Q4 Results
Volume growth was robust in the March quarter with impressive Ebitda margin, Nuvama said.
Shares of Vijaya Diagnostic Centre Ltd. surged to hit lifetime high after various brokerages raised their target price for the stock as its fourth-quarter revenue and net profit rose.
Vijaya Diagnostic Centre Q4 FY24 Result Highlights (Consolidated, YoY)
Revenue rose 28.27% to Rs 155.2 crore.
Ebitda was up 28.53% to Rs 63.1 crore.
Margin expanded 8 bps to 40.65%.
Net profit rose 21.46% to Rs 33.67 crore.
Vijaya Diagnostics Q4 Results Review - Renewed Push For Growth; Upgrade To Add: Yes Securities
Nuvama has raised its target price on the stock to Rs 910 from Rs 755 earlier. While, ICICI Securities Ltd. revised up the target price to Rs 700 from Rs 605, Emkay's target price was increased to Rs 750 from Rs 725.
Volume growth was robust in the March quarter with impressive Ebitda margin, Nuvama said. Expansion will pay-off and the company is poised to gain in Pune and Kolkata, it said. The brokerage has maintained its 'buy' call for the stock.
"Though better than anticipated breakeven in recently-commissioned hubs lends comfort on the margin trajectory, we believe higher costs due to network expansion would weigh on margins in the medium term, as revenue diversification from core markets occurs," Emkay said. It has an 'add' rating on the stock.
The company's guided capex of Rs 2.2 billion (over two years) towards network infrastructure would keep the return ratios muted, it said.
However, ICICI Securities has a 'hold' rating. The stock trades at a pricey 21 times FY26E EV/Ebitda, it said.
"While network addition will likely dent PH’s (recently acquired) margins in the near term by 100–200 bps, we believe its better mix and operating from existing business could help the company cushion the impact," it said. "We expect revenue to grow at 21.6% over FY24–26E, driven by improvement in footfalls, network addition and the acquisition of PH."
Shares of the company rose as much as 9.46% before paring gains to trade 7.08% higher at 12:40 p.m., compared to a 0.33% advance in the NSE Nifty 50.
The stock has risen 15.64% year-to-date and 103.61% in the last 12 months. Total traded volume so far in the day stood at 15.98 times its 30-day average. The relative strength index was at 73.32, indicating that the stock may be overbought.
Of the nine analysts tracking the company, six maintain a 'buy' rating and three recommend a 'hold, according to Bloomberg data. The average 12-month analysts' price target implies a downside of 0.5%.
