Modern Diagnostic: A Strategic Preview of the Year-End IPO
IP
IPO List Editorial • 1 min Read
Modern Diagnostic & Research Centre is set to open its doors for public subscription on December 31, 2025. This ₹37 crore SME issue is being viewed as the "final healthcare opportunity" of the year. With a price band of ₹85–₹90, the company is looking to capitalize on the increasing corporatization of pathology and radiology services in North India. As of today, the Grey Market Premium is "Nil," but this often changes as the subscription opens.\n\nThe company’s USP is its integrated model—offering everything from basic blood tests to high-end MRI and CT scans under one roof. This "one-stop-shop" approach has allowed them to maintain a high patient retention rate in Haryana and Delhi. The IPO funds will be used to establish a new "Center of Excellence" in Gurgaon, equipped with AI-driven diagnostic tools that can reduce human error in radiology reports.\n\nFinancially, Modern Diagnostic is a "High-Margin" player. Their EBITDA margins have remained consistent at 18%, significantly higher than many other service-sector SMEs. The company is also virtually debt-free, which provides a clean slate for future expansions or acquisitions. Analysts believe that the ₹90 price point is a "fair valuation," leaving some room for a 10-15% listing gain if the healthcare sector remains bullish in the first week of 2026.\n\nFor retail investors, Modern Diagnostic offers a "Defensive" hedge. Diagnostic stocks usually perform well during market volatility because the demand for healthcare is non-discretionary. However, the risk lies in the localized nature of their brand. To grow further, they will need to prove that they can replicate their Gurgaon success in other states like Rajasthan and Punjab.\n\nIn summary, this is a "Quality" SME pick to round off your 2025 portfolio. The subscription closes on January 2, 2026, and the allotment will be finalized by January 5. We recommend monitoring the "QIB Interest" on the opening day to gauge institutional appetite for this healthcare regional leader.
