Indian markets amid an uncertain environment collapsed by a great deal on Monday (December 6, 2021) with India VIX galloping over 8 percent. While the Omicron variant is among the reasons for the brutal sell-off by a steep quantum in trade today, it can also be a cause for stocks from healthcare or diagnostic space to gain sharply from here.
Likewise, a noted expert from the field has suggested a diagnostic stock to buy for solid gains in the short term. Yes we are talking about Krsnaa Diagnostics which debuted on the stock exchanges this year itself in August at Rs. 1025 per share and in less than 4 months has correctly sharply after hitting a high of Rs. 1099.70 apiece on the NSE. The stock last closed on December 6, 2021at a price of Rs. 740.95.
Why a ‘Buy' on the scrip of Krsnaa Diagnostics?
As it is with the rapid spread of the new Omicron variant, there shall be more testing and diagnosis and here is where the company shall come into action.
Sound, dynamic and young management
Now since August the stock has seen a considerable beating with 52-week low levels of Rs. 626 and the stock now technically has formed double bottoms
The company is the largest diagnostic chain within the diagnostics and radiology space working on PPP/ public private partnership business model.
More concentrated on the Shop on Shop and B2B business strategy-meaning the diagnostic company sources diagnostic, testing and other works from medical hospitals and other such institutions.
Strong shareholding of DIIs at currently around 30 percent, promoter shareholding at over 27 percent. Of the public shareholding, 15 percent is held by a large fund.
From the IPO proceeds, the company reduced its debt.
In comparison to other diagnostic stocks, the stock of Krsnaa is available at cheap valuations.
Buy Krsnaa Diagnostics
While other healthcare scrips such as Metropolis and Vijaya Diagnostics among others are also on the recommendation list. The expert goes on to suggest buying Krsnaa Diagnostics at current levels for a target price of Rs. 830/850, implying upside of up to 15 percent.
About Krsnaa Diagnostics
The company commands a market cap of Rs. 2326 crore and has a PAN presence across 14 states and a network of 1800 diagnostic centres. With the most advanced technology in place, equipped with an advanced cloud-based PACS workflow capable of rapid deployment and easy integration into flexible operational needs, accurate reports are delivered from well-qualified Radiologists and Pathologists from across the globe.
Amid another Covid variant risk surfacing, the healthcare segment stock is a top pick by an expert. Stock market investment is risky. Do all possible research and analysis before making any stock market investment. The above story should not be misread as an investment advice into the scrip.