Can Molbio Diagnostics IPO deliver long-term growth for high risk investors?

Business

Incorporated in 2000, Molbio is engaged in research, development and manufacturing of diagnostic solutions for infectious and non-communicable diseases. Government and international aid agencies account for over four-fifth of its revenue.

Nearly 74% of the revenue comes from sale of test kits, out of which 70% comes from diagnostic test kits for Tuberculosis.

Molbio Diagnostics collects Rs 281 cr from anchor investors ahead of IPO

Financials

Revenue from operations rose 31.5% annually to ₹1,445.7 crore and net profit grew 40.2% annually to ₹164.1 crore between FY24 and FY26. Operating profit before interest, tax, depreciation and amortisation (Ebitda) rose 33.2% to ₹328.2 crore during the period. Ebitda margin grew to 22.6% in FY26 from 22% in FY24. In FY26, on a year-on-year basis, revenue jumped 41.7%, Ebitda rose 27.9% while net profit grew 18.4%.

Valuation

Considering the post-IPO equity and net profit for FY26, the company demands a price-earnings (P/E) multiple of upto 57. While it has no directly comparable listed peer in India, other healthcare diagnostics and medical device companies, including Poly Medicure, Dr. Lal PathLabs, Metropolis Healthcare, and Vijaya Diagnostic Centre, trade at P/E multiples between 54 and 81.

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