Saurabh Mukherjea Picks Vijaya Diagnostic Centre over Gujarat Ambuja Exports. Said, the huge network of hubs and spokes built by the company in the vicinity of Hyderabad gave it an edge in corporate tie-ups as well as in wellness packages.
Making changes to his small-cap portfolio Saurabh Mukherjea recently picked Vijaya Diagnostic Centre NSE 4.76 per cent and discarded Gujarat Ambuja Exports NSE – 0.64 per cent. Since then, a fall of around 30 per cent is seen in the shares of Vijaya Diagnostic Centre, listed at Rs 542.30 on September 14, 2021 from its 52-week high of Rs 672.50.
Dalal Street’s top fund manager’s team which runs Marcellus PMS fund noted the two key competitive advantages of Vijaya:
Radiology and pathology both as an integrated business model offers one-stop convenient solutions for clients. Furthermore, the huge network of hubs and spokes built by the company in the vicinity of Hyderabad allows Vijaya an edge in corporate tie-ups as well as in wellness packages.
With the high-end equipment quality and the quality of the radiologists employed by it, gives Vijaya’s quality edge over its peers.
Considering the two factors, Team Mukherjea said that Vijaya could gain a market share of around 20 per cent in Hyderabad and capturing other cities of Andhra Pradesh and Telangana in recent years. Accommodating the diagnostic stock, Saurabh sold multibagger Gujarat Ambuja Exports, which crossed over 300 per cent in the last five years.
“Gujarat Ambuja Exports secured lowest score in our position sizing framework for the portfolio and comparatively Vijaya Diagnostic Centre score was good,” said Marcellus on the rearrangement its portfolio of smallcap stocks. One year data shows that the fund has performed well leaving its own benchmark BSE Smallcap behind by giving a return of 8.8 per cent as against the index’s return of 7.3 per cent.