Krsnaa Diagnostics shares surge 11% after securing 15-Year Punjab PET-CT Deal

Shares of Krsnaa Diagnostics jumped as much as 11.48% during Thursday’s trading session, touching an intraday high of Rs 598, after the company announced the execution of a 15-year concession agreement with Punjab Health Systems Corporation (PHSC).

The agreement marks Krsnaa Diagnostics’ entry into the PET-CT diagnostic services segment, opening up a new avenue of growth for the company amid rising demand for advanced oncology diagnostics.

Under the agreement, the company will develop, operate and maintain PET-CT diagnostic facilities at four selected government hospitals in Punjab. The project will be implemented on a Public-Private Partnership (PPP) basis under the Design, Build, Finance, Operate, Maintain and Transfer (DBFOT) model.


According to the company’s filing, the concession has a tenure of 15 years. Unlike a conventional fixed-value contract, the financial consideration cannot be determined upfront, as revenues will depend on the number of PET-CT scans conducted and applicable user charges.

Krsnaa Diagnostics said the project is expected to create a new revenue stream and provide long-term revenue visibility over the concession period.

The company has entered the segment in response to the growing requirement for advanced cancer diagnostics, while also assessing the opportunity for its strategic potential.

Under the agreement, Krsnaa Diagnostics will develop, operate and maintain PET-CT facilities at four government hospitals in Punjab under the PPP model using the DBFOT structure. The concession is valid for 15 years.

Revenue will be generated based on the number of PET-CT scans performed and applicable user charges. The project marks the company’s entry into the PET-CT diagnostics segment. The awarding entity is a domestic government authority, with no promoter interest involved.

With the deal, Krsnaa Diagnostics is expanding beyond its existing diagnostic operations into high-end imaging for oncology, while securing a long-duration operating opportunity through the Punjab government partnership.

The stock is currently trading at a market capitalisation of around Rs 1,829 crore, while its 52-week high stands at Rs 894.40.

On the valuation front, Krsnaa Diagnostics trades at a P/E ratio of 17.85 and a P/B ratio of 1.77.

Technically, the stock is trading above six of its eight key simple moving averages (SMAs), while remaining below its 150-day and 200-day moving averages, indicating mixed momentum.

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