Krsnaa Diagnostics Limited

Healthcare — Diagnostics & Research · NSE

₹534.60+₹1.30 (+0.24%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Krsnaa Diagnostics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Krsnaa Diagnostics Limited provides diagnostic services in India.

IndustryDiagnostics & Research

SectorHealthcare

Employees3,296

Annual revenue₹773 Cr

How does it make money?

Turns over ₹773 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 3,296 employees supports ₹23.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 17.1% and earnings to grow about 86.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.1%

Est. earnings growth+86.7%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +59% while net margin moved +3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+59%

Margin effect+3%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.0x

3Y Median

33.5x

40 monthly readings · mean 34.2x · range 17.3x–57.5x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 33.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 46% below the peer median of 33.3x.

vs. its own history

Cheap

33.5x median over 40 months · -46%

vs. sector peers

Cheap

33.3x median of 4 peers · -46%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.2x

PEG

1.02

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 1545% over 3 years, from ₹32 Cr to ₹534 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 304% against revenue up 59% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 46% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 304% against revenue up 59%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.6% CAGR
Latest reported year was 22.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹76 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹1,821 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.77x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹29.65

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

22.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.4%

Falling

Profits are shrinking

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹76 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

11.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.7%

Average

Average margins

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

2.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

545.1 / 552.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹487 Cr	₹620 Cr	₹717 Cr	₹773 Cr	+16.6%
EBITDA	₹140 Cr	₹159 Cr	₹208 Cr	₹227 Cr	+17.5%
EBITDA Margin	28.8%	25.6%	29.0%	29.4%	—
PAT (Net Profit)	₹62 Cr	₹57 Cr	₹78 Cr	₹101 Cr	+17.8%
EPS	₹19.29	₹17.31	₹23.56	₹30.88	+17.0%
ROE	8.4%	7.0%	8.8%	10.3%	—
ROCE	10.7%	9.4%	12.7%	10.5%	—
Total Debt	₹32 Cr	₹160 Cr	₹204 Cr	₹534 Cr	+154.3%
Free Cash Flow	-₹65 Cr	-₹170 Cr	-₹39 Cr	-₹76 Cr	—

🟢 Revenue has grown at 16.6% a year over 3 years.

🟢 EBITDA has grown at 17.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 29.4% over 3 years.

🟢 PAT (Net Profit) has grown at 17.8% a year over 3 years.

🟢 EPS has grown at 17.0% a year over 3 years.

🟢 ROE has risen from 8.4% to 10.3% over 3 years (+1.9 pts).

🟡 ROCE has held roughly flat at 10.5% over 3 years.

🔴 Total Debt has grown at 154.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,824 Cr

Total Liabilities

₹843 Cr

Cash & Equivalents

₹30 Cr

Operating Cash Flow

₹143 Cr

Capex

-₹219 Cr

Shareholding (proxy)

Institutional Holding

13.5%

Insider Holding

45.7%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹841

+57.3% vs CMP

Target Range

₹682 – ₹994

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

4 mixed2 general

Stock Of The Day KRSNAA Diagnostics: SL 525 Tgt 540, 545, 550 Entry into PET-ct in Punjab market is big positive Alert on AI related stocks : AI, Power and Capital equipment stocks to remain in pressure. Don’t jump to buy as of now. Stocks like Hitachi, GE T

Facebook, 16 Sept

Earnings Miss: Krsnaa Diagnostics Limited Missed EPS By 18% And Analysts Are Revising Their Forecasts

Simply Wall Street, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Broker’s call: Krsnaa Diagnostics (Buy)

BusinessLine, 27 May

Why Is Krsnaa Diagnostics Share Price Falling Key Reasons 2026?

Univest, 04 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Krsnaa Diagnostics Q4 PAT climbs 102% YoY to Rs 42 cr

Business Standard, 26 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Krsnaa Diagnostics share price jumps 11%: Stock in focus after company enters PET-CT segment

Livemint, 17 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑