Suraksha Diagnostic IPO - Should You Subscribe? Read Anand Rathi's Analysis

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..Anand Rathi Report.Suraksha Diagnostic Ltd. will launch its initial public offering on November 29 and the offer closes for subscription on December 03. The diagnostic chain company has set the price band in the range of Rs 420–441 per share. The Rs 846.25 crore IPO consists entirely of an offer for sale of 1.92 crore shares with no component of fresh issue. The minimum lot size for bidding is 34 shares, and then in multiples thereof..Valuation & outlook Suraksha Diagnostic is a diagnostic chain in eastern India is well positioned to capitalize on the growth opportunities for organized diagnostic chains in the diagnostic services markets of eastern and northeastern India. They have established a comprehensive operational network spanning the states of West Bengal, Bihar, Assam, and Meghalaya. As of June 30, 2024, the company offers a diverse range of over 2,300 tests encompassing multiple specialties and disciplines. The company aims to enhance its presence in its operating regions, with a particular focus on Kolkata. Most of its diagnostic centers are situated in urban areas of Kolkata. In addition to focusing on their core geography, the company plans to expand and strengthen its presence in neighboring regions of eastern and northeastern India. At the upper band company is valuing at 99.3 times its FY24 earnings along with being valued at 75.0 times if we annualize FY25 earnings. Following the issuance of equity shares, the company's market capitalization stands at Rs 22,967.6 million, with a market cap-to-sales ratio of 10.5 based on its FY24 earnings. The diagnostic sector in which the company operates is highly competitive. Moreover, the company's operations are confined to the eastern part of India, limiting the scope of its market. We believe that the issue is richly priced and recommend “Avoid” rating to the IPO..Click on the attachment to read the full IPO report:.Suraksha Diagnostic Raises Rs 253 Crore From Anchor Investors Prior To IPO Launch.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.

Suraksha Diagnostic IPO - Should You Subscribe? Read Anand Rathi's Analysis

The Rs 846 crore IPO will be launched today and the company has set the price band in the range of Rs 420–441 per share.

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Suraksha Diagnostic IPO - Should You Subscribe? Read Anand Rathi's Analysis

The Rs 846 crore IPO will be launched today and the company has set the price band in the range of Rs 420–441 per share.

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