Suraksha Diagnostics IPO: What signals does GMP give after the first day of trading? Subscription status, review, apply or not?

Suraksha IPO Diagnostics: Suraksha Diagnostic Limited IPO price range fixed at ₹420 to ₹441 per share par value ₹2. Suraksha Diagnostic IPO subscription date is scheduled for Friday, November 29th and closes on Tuesday, December 3rd. Allocation of anchor investors for the Suraksha Diagnostic IPO is scheduled for Thursday, November 28th.

Details about the company Suraksha Diagnostics LLC

The company provides comprehensive, integrated solutions for pathological and radiological examinations, as well as medical consulting services. It leverages its extensive operational network to effectively serve its clients. This universal approach ensures convenience and accessibility of medical services for all clients.

According to Red Herring Prospectus (RHP), Suraksha Diagnostics’ list of competitors includes Dr Lal PathLabs, which has a price-to-earnings (P/E) ratio of 77.08, Metropolis Healthcare with a P/E of 89.61, Thyrocare, 65.52 and Vijaya Diagnostic has a P/E of 86.40.

Suraksha Diagnostics posted impressive growth with its revenue increasing by 14.75 percent. Notably, the company’s profit after tax (PAT) grew by 281.32% between the financial years ended March 31, 2024 and March 31, 2023.

As of June 30, 2024, the operational network includes a flagship central reference laboratory and eight satellite laboratories at diagnostic centers. There are also 215 customer touchpoints, including 49 diagnostic centers and 166 sample collection centers, which are primarily franchised.

This extensive network covers the states of West Bengal, Bihar, Assam and Meghalaya, facilitating efficient service delivery and increasing access to diagnostic testing in the region. In the three months ending in 2024, the company conducted about 1.58 million tests, serving about 280,000 patients. Notably, 95.34 percent of their operating revenues come from their core region, which includes Kolkata and adjoining areas of West Bengal.

The diagnostic industry’s tiered model, particularly in pathology, is a centralized approach to managing diagnostic testing and laboratory services. The central laboratory serves as the hub of this structure where samples are received, processed and analyzed. Small satellite laboratories or branch laboratories are responsible for collecting and transporting samples to a central facility. This model streamlines operations, improves efficiency and can lead to faster test results, as highlighted in a recent CRISIL report.