The business is doing good, I’d say stay put, don’t make the mistake I made. I sold it after it gave me 2x, and the stock price is up 50% from those levels and I regeret selling it now.

Ksnaa Diagnostics

Growth Guidance:
Krsnaa Diagnostics has provided clear growth guidance in the earnings calls:
• The revenue for FY24 reached ₹620 crores, marking a 27% year-on-year growth, and the company expects to maintain a 25-30% growth rate going forward.
• Their EBITDA margins stabilized at around 24-26%, with plans to maintain this in the future.
• The company is focusing on aggressive expansion, particularly in the radiology segment, where several new tenders in states like Maharashtra and Madhya Pradesh have been secured.
• The B2C expansion is still at an early stage, but the leadership is optimistic about scaling it. A 40-lab expansion in the retail space is in progress, which aims to leverage existing PPP infrastructure for better profitability.

Risk Factors:

1. Project Delays and Receivables:

• Delays in site handovers from government authorities have slowed down project execution, which is a significant operational risk. This is mentioned particularly in relation to the Maharashtra and UP tenders.

• High receivable days, especially from government contracts (e.g., Himachal Pradesh), strain working capital. Delayed payments due to elections also increase risks related to liquidity.

2. Court Case and Tender Risks:

• The Rajasthan tender has been a legal challenge. The ongoing court case presents a risk, though the company has prepared to continue its growth even if the tender does not go through.

• Some delays have occurred due to site handover and infrastructure-related issues, such as electricity problems, which have impacted the timely installation of equipment, especially in older tenders like the one in Uttar Pradesh . Despite these challenges, tis positioned to deploy the necessary equipment throughout FY24-25.

3. Pathology Margin Pressure:

• The pathology segment, which has a lower margin than radiology, could impact overall profitability. As pathology centers are still in the ramp-up phase, their contributions are lower, which creates a risk in achieving higher margins.

CT and MRI Installations in Maharashtra:

• Out of the 73 planned installations in Maharashtra, 21 CT centers have already been operationalized, with the remaining 18 CT centers soon to be completed.
• Additionally, Krsnaa has signed an order for 17 new MRI machines and plans to install 5 MRI machines by the end of FY25 MP Installations.
• The company has also secured agreements for 5 MRI centers in Madhya Pradesh, with two expected to be operational by year-end.
• In FY25, Krsnaa plans to operationalize 14 CT machines and 5 MRI machines in a phased manner.
  These installations, once completed, are expected to contribute significantly to Krsnaa’s revenue growth.

Peer comparison

I had interacted with Emerald to roll-out EWA in our startup. The following were my observations:

1. They don’t have any senior guy leading the sales of EWA – promoter’s son is taking care of that. He is still studying his MBA or any other PG course, i don’t remember exactly.
2. The product is okay – lot of other NBFCs are also adding this product in their arsenal. It can be another product for a NBFC but making it your sole revenue generator is a stretch.
3. Adoption is challenging for those companies with relatively higher field related work. Companies prefer to have salary as a medium to recover on-field losses or cover absconding cases, etc.,

Neuland Laboratories – Flash Note – 14 Oct 24.pdf (409.2 KB)

Record Date: 30th October, 2024

Sub-division/Split of Equity Shares of 1 equity share of the
Company having face value of ₹10/- each into 5 (Five) equity
shares having face value of ₹2/- each

https://nsearchives.nseindia.com/corporate/JASH_15102024122151_NSEINTIMATIONRECORDDATE.pdf