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Check Before You Invest : Vijaya Diagnostic Centre Ltd

BSE: 543350 NSE: VIJAYA ISIN: INE043W01024
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Vijaya Diagnostic Centre Ltd belong to?
Vijaya Diagnostic Centre Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Vijaya Diagnostic Centre Ltd a good quality company?
Vijaya Diagnostic Centre Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vijaya Diagnostic Centre Ltd undervalued or overvalued?
Vijaya Diagnostic Centre Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 71.45 62.04
Price to Book 12.92 11.49
Price to Sales 15.18 13.83
EV to EBITDA 34.4 30.75
Q.4 Is Vijaya Diagnostic Centre Ltd a good buy now?
Vijaya Diagnostic Centre Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd revenue growth is 24.4% for FY-2025, which is above its 5-year CAGR of 15%, indicating faster growth.

Q.2 Gross Profit margin of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.9% for FY-2025, which is in line with its 5-year median of 39.8%, indicating stable margins.

Q.3 Operating Profit Margin of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 40.1% for FY-2025, which is in line with its 5-year median of 40.32% indicating stable margins.

Q.4 Net Profit Margin of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Net Profit Margin is 21.1% for FY-2025, is in line with its 5-year median of 21.84%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 38.9 39.8
Operating Profit Margin (%) 40.1 40.32
Net Profit Margin (%) 21.1 21.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Return on Asset is 12.76%, which is in line with its 5-year historical median of 13.11%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Return on capital employed is 30.27% for FY-2025, which is in line with its 5-year historical median of 30.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Return on equity is 19.84% for FY-2025, which is in line with its 5-year historical median of 19.96%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Cash conversion cycle is -26 days, in line with its 5-year historical median of -27 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.6 0.6
ROE (%) 19.84 19.96
ROCE (%) 30.27 30.4
Cash Conversion Cycle -26 days -27 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.20, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vijaya Diagnostic Centre Ltd?
Vijaya Diagnostic Centre Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vijaya Diagnostic Centre Ltd?

Q.1 Promoter shareholding and pledge status of Vijaya Diagnostic Centre Ltd?
Promoters hold 52.51% of the Vijaya Diagnostic Centre Ltd, with 1.48% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vijaya Diagnostic Centre Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vijaya Diagnostic Centre Ltd vs industry peers?
Vijaya Diagnostic Centre Ltd revenue CAGR is 15.00%, compared to the industry median CAGR of 1.38%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 24.4 1.4
Gross Profit Growth (%) 21.6 18.5
Operating Profit Growth (%) 25.2 15.4
Net Profit Growth (%) 20 23.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.6 0.73
ROE (%) 19.84 13.88
ROCE (%) 30.27 17.77
Cash Conversion Cycle (days) -25.51 1

Valuation & price assessment

Q.1 Stock return of Vijaya Diagnostic Centre Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 51.82% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 51.8% 28.6%
Q.2 Valuation ratios of Vijaya Diagnostic Centre Ltd vs historical?
The current P/E ratio of 71.45 is higher than its historical median of 62.04, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 71.45 62.04 37.25
Price to Book 12.92 11.49 3.64
Price to Sales 15.18 13.83 4.21
EV to EBITDA 34.4 30.75 17.66

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