- Date : 30/08/2022
- Read: 3 mins
Krsnna Diagnostics can offer multi-bagger returns.
The year 2022 has been volatile for the stock markets. The YTD Nifty50 return is -1%. This is after strong growth in the last two years. The stock markets have been under pressure this year because of many factors like high inflation, the Russia-Ukraine war, hawkish commentary by the Federal Reserve and other central banks, etc.
After the resolution of covid concerns, the diagnostics sector has been under immense pressure. The sector is marred by concerns regarding less use of diagnostic centres. Although this might not be true, the sector has been underperforming the markets for a good couple of years. Most healthcare stocks are down this year.
Krsnaa diagnostics came out with an IPO last year. The issue was oversubscribed by 64 times at the upper end of the price band, i.e. Rs 954. But since the IPO, the stock has been underperforming the markets. The stock is available at a price of Rs 483 in trading on Monday. On Friday, it closed at a price of Rs 478, down almost 50% from the issue price.
About Krsnaa Diagnostics
Krsnaa Diagnostics is a good stock in the diagnostics market. The company has a rapid expansion plan. It has public-private partnerships and tie-ups with various state governments. The company is a differentiated player in the diagnostics sector, with a presence in 13 states. The company has more presence in non-metro cities and smaller towns.
The company offers a wide range of services like MRI, CT Scans, X-rays, etc. The company has its centres in public and private hospitals only. The company has made many investments via the PPP mode, and it works in collaboration with the state governments.
The company has a market capitalization of Rs 1,500 crores. The 52-week high price is Rs 956, and the 52-week low price is Rs 456. At the current market price, the TTM PE ratio of the company is 24. The dividend yield of the stock is 0.52%. The fast-growing diagnostic sector and its niche presence make it a good multi-bagger bet for the long term.
What should be done?
If you are a long-term investor, you can consider the stock with a long-term horizon. Also, it is available at a discount of 50% from the issue price. This stock is in a good sector which is under pressure after the diagnostic tests fell down with the subsiding of covid related fears. But the general healthcare awareness in India is rising, and this stock could be a good multibagger bet.
Related: Different types of IPO investors