Stock To Buy: With Steady Performance & Healthy Outlook, This Small Cap Stock Likely To Surge 40%

ICICI Securities has assigned a "Buy" to Vijaya Diagnostic Centre Ltd, a small cap Hospital sector stock. The brokerage recommended investors to buy the stock. The estimated target price given by the brokerage is Rs 579 apiece for the stock. With the given target price, the brokerage claims a potential upside of up to 40% from its current level. Vijaya Diagnostic Centre is a leading diagnostic medicare services provider in Southern India and offers comprehensive services to patients. Its market valuation is Rs 4,224.65 crore. Below we highlighted the key details about the stock:

Stock performance and Outlook

The stock of Vijaya Diagnostic Centre on NSE last traded at Rs 413.90 apiece. It recorded its 52 week high on 22 December 2022 at Rs 528 apiece and 52 week low on 14 June 2022 at Rs 295 apiece, respectively. It made its debut on the exchange on 14 September 2021.

Since its listing on exchange it has given 33.25% negative return. It has fallen 6.2% in the past 1 week. It gained 2.81% in the past 1 month. It has fallen 9.56% in the past 3 months. In the past 1 year, it declined 6.77%.

 

ICICI Securities assigns "Buy" on Stock with Rs 579/share target price

According to the brokerage, Vijaya Diagnostic Centre's (Vijaya) Q3FY23 performance was broadly in line with our estimates. Revenues grew 2.1% YoY (-6.3% QoQ) to Rs1.1bn (I-Sec: Rs1.1bn). Covid revenues were negligible during the quarter. EBITDA margin declined 120bps QoQ to 39.1% (I-Sec: 38%) due to negative operating leverage.

"We remain positive on the stock mainly due to the company's B2C focus (95% of revenues in Q2FY23), highest margin within the industry and continued focus on deeper expansion in its dominant regions. These strengths synergise with supportive macro factors, including the likelihood of a faster shift of market to organised players. Further expansion in the east, especially Kolkata, may drive medium- to long-term growth. However, incremental competition may affect near-term performance. Maintain BUY with a revised target price of Rs579/share (earlier: Rs585)," the brokerage has said.

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.