Buy Krsnaa Diagnostics, target price Rs 1050: JM Financial

JM Financial has buy call on Krsnaa Diagnostics with a target price of Rs 1050. The current market price of Krsnaa Diagnostics is Rs 639.05.

Krsnaa Diagnostics, incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 2000.03 Crore) operating in Hospitals & Allied Services sector.

Krsnaa Diagnostics key Products/Revenue Segments include Hospital Services and Consultancy Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 143.80 Crore, up 3.34 % from last quarter Total Income of Rs 139.15 Crore and up 22.38 % from last year same quarter Total Income of Rs 117.50 Crore. Company has reported net profit after tax of Rs 14.64 Crore in latest quarter.

Investment Rationale
Given the healthy execution pipeline and improving performance trajectory, the brokerage bakes in 26%/35% Revenue/PAT CAGR over FY23-26. Further, it is fairly confident of Krsnaa’s execution capabilities and believe there is sufficient scope for earnings upgrade.

Promoter/FII Holdings
Promoters held 27.8 per cent stake in the company as of 30-Jun-2023, while FIIs owned 5.69 per cent, DIIs 19.76 per cent.