1. At a Glance
Vijaya Diagnostics flexed with Q1 FY26 revenue at ₹188 Cr (+20% YoY) and PAT at ₹39 Cr (+22% YoY). High P/E? Yes, 78x. But the market still loves this South Indian diagnostic kingpin.
2. Introduction
Imagine a health check-up package that doesn’t drain your wallet but still gives you a clean bill of health. Vijaya is that – steady, profitable, and slightly overpriced, like your favourite organic avocado toast.
3. Business Model – WTF Do They Even Do?
- Core: Diagnostic tests, radiology, nuclear medicine, health check-ups.
- Scale: 81 centers, 11 labs, 13 cities.
- Special Sauce: First in South India to bring PET-CT scans; now expanding like a diagnostic octopus.
4. Financials Overview
- Q1 FY26 Revenue: ₹188 Cr
- PAT: ₹39 Cr
- OPM: 39% (lab coats printing money)
Verdict: High margins, clean execution, healthy numbers – pun intended.
5. Valuation – What’s This Stock Worth?
- Current P/E: 78x (ouch!)
- Fair Value Range: ₹950 – ₹1,200
Comment: Trading like a premium wellness package – expensive, but people still buy.
6. What-If Scenarios
- Bull Case: Merger synergies + volume growth → ₹1,400.
- Bear Case: Margin compression + slowdown → ₹850.
- Base Case: ₹1,100 – ₹1,200 remains fair.
7. What’s Cooking (SWOT Analysis)
Strengths: Strong brand, high margins, regional dominance.
Weakness: Valuation is nosebleed territory.
Opportunities: Medinova merger + expansion into new geographies.
Threats: Competition from Dr. Lal & Metropolis, regulatory price caps.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 10 |
| Reserves | 785 |
| Borrowings | 320 |
| Total Assets | 1,274 |
| Comment: Clean and cash-rich; debt low for a scaling player. |
9. Cash Flow (FY23–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | 165 | -110 | -42 |
| FY24 | 183 | -141 | -45 |
| FY25 | 224 | -182 | -52 |
| Snark: Operations print cash, investing burns it – classic growth play. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 19.8% |
| ROCE | 21.7% |
| D/E | 0.25 |
| PAT Margin | 40% |
| P/E | 78x |
| Punchline: Sexy ratios, stressy valuation. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 459 | 182 | 85 |
| FY24 | 548 | 221 | 120 |
| FY25 | 681 | 273 | 144 |
| TTM | 713 | 286 | 151 |
| Clear upward slope: revenue, profits, and investor expectations. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Dr Lal Pathlabs | 2,461 | 489 | 52 |
| Metropolis | 1,331 | 140 | 73 |
| Vijaya Diagnostics | 713 | 151 | 78 |
| Thyrocare | 723 | 105 | 63 |
| Peer check: Vijaya wins margins, loses on sanity of valuation. |
13. EduInvesting Verdict™
Vijaya is the diagnostic lab equivalent of a boutique hospital – high service, high price, and high investor expectations. The Medinova merger adds spice, but at 78x P/E, the stock leaves no room for error.
Written by EduInvesting Team | 28 July 2025
Tags: Vijaya Diagnostics, Healthcare, Q1 FY26 Results, EduInvesting Premium
