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Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

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Contributor since: 2022







Krsnaa Diagnostics Ltd

A Business Analysis

About Krsnaa Diagnostics

Krsnaa Diagnostics Limited is amongst India’s largest differentiated diagnostics service providers offering a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory, and tele-radiology services to public and private hospitals, medical colleges, and community health centers pan-India. We provide quality and inclusive diagnostic services at affordable and 
significantly lower rates than the leading diagnostic players.

Company's Services


  • MRI (0.3 Tesla to 3.0 Tesla)
  • CT (2 Slice to 128 Slice)
  • X-ray (CR Systems and Digitizer) (100 mA to 500 mA)
  • Mammography (CR Mammography / Digital Mammography)
  • Ultrasound and Color Doppler (2D to 4D)
  • Bone Densitometry


  • Routine Testing (including but not limited to Microbiology, Histopathology, Serology and Immunoassay)
  • Specialized Testing (including but not limited to Biochemistry, Molecular Biology, Oncology Genomics and personalized precision based medicine)


Key Highlights of the business

Journey So Far

Krsnaa's Footprints

Only Company with pan-India presence in both radiology and pathology

Krsnaa Diagnostics Strength

Unique and scalable diagnostics company

  • One of the fastest-growing diagnostics service providers in India
  • Diagnostic equipment is brand new, leveraging latest technology, state-of-the-art equipment and procured from the top OEMs
  • Focus on the public-private partnership (PPP) segment and has the largest presence in the diagnostics PPP segment
  • Focusing on highly underpenetrated and underserved areas through PPP collaboration leveraging captive customer bases
  • Partnership with several private healthcare providers including corporate hospitals and trust hospitals to operate diagnostic centers within their facilities
  • Krsnaa’s agreements with its partners are typically long-term in nature and ensure predictability of revenues from operations

Strong brand equity

  • High-quality, reliable services at disruptive pricing (value for money) (upto 60% lower than market rates)
  • Focused on providing diagnostic services to the mass segment in semi-urban and rural areas in tier II and III cities and towns \
  • Adherence to highest quality standards by certified testing reagents and qualified radiologists and pathologists 

Extensive footprint and infrastructure

  • Extensive footprint with a network of 2,071 diagnostic centers spanning across 14+ states in India
  • Large addressable customer base with bestin-class infrastructure and timely reporting
  • Highest penetration across districts with presence in 70+ out of 700 districts

Robust business model with efficient cost structure

  • Well diversified business mix of radiology and pathology
  • Ability to bid at competitive prices and conversion of more bids into projects
  • Lower fixed cost of operations, low marketing costs, and efficient procurement of scans result in cost efficiency
  • Lean operations 


  • National Accreditation Board for Hospitals & Healthcare Providers (NABH) certified
  • National Accreditation Board for Testing and Calibration Laboratories (NABL) recognized

Cost competitiveness and high operating leverage

  • Existing investment on equipment and infrastructure, large scale of operations, and cost competitiveness have resulted in a strong bid-win rate of 78% in the past and the trend is expected to continue
  • Ability to quote attractive pricing at the time of renewal and strong track record of successfully renewing the contract
  • Well placed to withstand any industry price caps as well as pricing pressure on tests

India’s Largest Tele-Radiology Reporting Hub

We operate one of India’s largest teleradiology reporting hubs in Pune which processes large volumes (estimated 8 to 9 million images per annum) of X-rays, CT scans, and MRI scans round the clock and 365 days a year and allows to serve patients in remote locations with limited diagnostic facilities. 

  • Scalable business model and enables wider penetration into tier II and tier III cities
  • Analog images get converted into digital format and sent to hub for examining and preparing report
  • Experienced team of radiologists and lab technicians
  • Stringent quality control checks to ensure highest reporting standards coupled and accurate diagnosis
  • Sufficient capacity to process large volumes in the coming years

Financial acumen

  • Consistent growth in revenues and profitability over the years
  • Cash-rich business, efficient working capital management, and strong balance sheet will enable us to pursue growth opportunities

Extensive Footprint and Infrastructure

Huge Opportunity Size - Unaddressed by the Peers

Minimal Competition from Regional Chains due to:
▪ Krsnaa’s expertise and scale of business
▪ Access to high-cost radiology machines at relatively lower prices

Entry Limitations:
▪ High capex, low opex model is tough to enter
▪ Disruptive pricing model makes it tough for competition to compete
▪ Larger chains focused on pathology tests

Krsnaa diagnostics provides high quality services at disruptive price

Krsnaa Offers Tests at 60-80% Lower than Market Rates:

  • Krsnaa Diagnostics offers high quality diagnostics services at disruptive prices
  • Well placed to withstand any industry price caps as well pricing pressure on tests

Cost Disruption…

Leading to a Virtuous Cycle..

India's largest tele-radiology hub

  • Scalable business model and enables wider penetration into tier II and tier III cities
  • Analog images gets converted into digital format and sent to hub for examining and preparing report. Addresses the shortage of full-time doctors and staff in the diagnostics industry
  • Experienced team of radiologists and lab technicians ▪ Stringent quality control checks to ensure highest reporting standards coupled and accurate diagnosis
  • Krsnaa Diagnostics organizes regular training session to enhance skills of the workforce and keep them apprised of the latest technological advancement in the field of diagnostics
  • Sufficient capacity to process large volumes in the coming years


Krsnaa's Competitive Advantage

Sustainable business model backed by underlying competitive advantages and well positioned to drive growth

Krsnaa's Pillar Growth

Growth Strategy

Target is to achieve 2x growth in Revenues and 3x growth in Profits by end of FY2024

Focusing on digital

Management of the company

Shareholding Pattern

Financial performance of the company

Operational performance trend

Stellar performance in revenue and profit

Segment wise performance

Strong cash collection and CFO







I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source of the contents - Company's annual report, results and investor presentation. Disclaimer - Given company in the article is not an recommendation as it is for the knowledge purpose only.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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