Suraksha Diagnostic Limited

Healthcare — Diagnostics & Research · NSE

₹305.00−₹2.65 (−0.86%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Suraksha Diagnostic Limited provides pathological and radiological services through diagnostic centers in India.

IndustryDiagnostics & Research

SectorHealthcare

Employees1,600

Annual revenue₹310 Cr

How does it make money?

Turns over ₹310 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 1,600 employees supports ₹19.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin31.8%

Net margin10.4%

Revenue / employee₹19.4 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.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Little sign of one

Returns on capital of 14.7% 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.

ROCE14.7%

ROE13.1%

Peer median ROE14.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 18.4% and earnings to grow about 27.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.4%

Est. earnings growth+27.3%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +63% while net margin moved +203% 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+63%

Margin effect+203%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

45/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.3x

2Y Median

50.0x

24 monthly readings · mean 54.6x · range 38.2x–82.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 2y median of 50.0x. 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 33% above the peer median of 33.3x.

vs. its own history

Fair

50.0x median over 24 months · -11%

vs. sector peers

Expensive

33.3x median of 4 peers · +33%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.3x

P/B

6.47x

EV/EBITDA

17.4x

PEG

0.63

Dividend Yield

0.16%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 26.3% to 31.8% over 3 years.
Return on equity is rising
ROE has improved from 4.2% to 13.1%.
Return on capital is rising
ROCE has improved from 6.5% to 14.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 35% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 386% against revenue growth of 63% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 386% against revenue up 63% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 35% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 26.3% to 31.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 386% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 33% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 13% a year✓ 17.7% CAGR
Latest reported year was 20.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹1,588 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.47x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹6.88

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

14.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

20.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

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

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹305

P/E (Forward)

31.1x

Improving

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

Operating Margin

21.8%

Good

Healthy core-business profitability

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

1.05

Adequate

Adequate, but no real cushion

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

333.3 / 322.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹190 Cr	₹219 Cr	₹252 Cr	₹310 Cr	+17.7%
EBITDA	₹50 Cr	₹76 Cr	₹86 Cr	₹99 Cr	+25.6%
EBITDA Margin	26.3%	34.9%	34.0%	31.8%	—
PAT (Net Profit)	₹7 Cr	₹24 Cr	₹32 Cr	₹32 Cr	+70.3%
EPS	₹1.25	₹4.54	₹5.97	₹6.18	+70.3%
ROE	4.2%	13.2%	15.1%	13.1%	—
ROCE	6.5%	15.4%	17.1%	14.7%	—
Total Debt	₹97 Cr	₹90 Cr	₹89 Cr	₹130 Cr	+10.4%
Free Cash Flow	₹31 Cr	₹15 Cr	₹21 Cr	₹14 Cr	-22.3%

🟢 Revenue has grown at 17.7% a year over 3 years.

🟢 EBITDA has grown at 25.6% a year over 3 years.

🟢 EBITDA Margin has risen from 26.3% to 31.8% over 3 years (+5.6 pts).

🟢 PAT (Net Profit) has grown at 70.3% a year over 3 years.

🟢 EPS has grown at 70.3% a year over 3 years.

🟢 ROE has risen from 4.2% to 13.1% over 3 years (+9.0 pts).

🟢 ROCE has risen from 6.5% to 14.7% over 3 years (+8.2 pts).

🔴 Total Debt has grown at 10.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 22.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹448 Cr

Total Liabilities

₹205 Cr

Total Debt

₹130 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹82 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

21.5%

Insider Holding

62.0%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

15 Sept 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹350

+14.8% vs CMP

Target Range

₹350 – ₹350

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

2 mixed1 negative3 general

Here's Why We Think Suraksha Diagnostic (NSE:SURAKSHA) Might Deserve Your Attention Today

Simply Wall Street, 09 Oct

Suraksha Diagnostic Limited | Stock Share Price Live

MarketSmith India, 15 Aug

SURAKSHA Stock Price and Chart — NSE:SURAKSHA

TradingView, 20 Aug

Suraksha Diagnostic pays ₹2,360 fine for shareholding filing delay

scanx.trade, 14 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Suraksha Diagnostic Q4 Profit Slips to ₹6.3 Cr Despite 25% Revenue Growth to ₹81.4 Cr

Sahi, 22 MayResults

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

Suraksha Diagnostic Share Price Target 2027 to 2030: Analyst Outl

Univest, 14 AugAnalyst view

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.8/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.7/15

🔴ValuationDemanding5.3/15

🔴RiskHigh2.3/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year17.7% CAGR
✓EBITDA margin holds above 30%31.8%
✓Free cash flow remains positive₹14 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 12%14.7%