Vijaya Diagnostic Centre shares surged over 3% on Thursday, trading at ₹1,358.80, up 3.5% in afternoon trade after Emkay Global Financial Services reiterated its buy rating. The stock climbed as much as 5% to an intraday high of ₹1,375.30, making it one of the top gainers in the Nifty 500 index. The positive market response reflects investor confidence in the company's growth trajectory following Emkay's latest research report, with the broader market showing resilience as Nifty closed at 24,056 on June 25 amid positive developments including RBI's ruling out of near-term rate hikes and progressing US-India trade talks.
Emkay Global Financial has reiterated its buy rating on Vijaya Diagnostic with a target price of ₹1,400 in its research report dated June 24, 2026. According to the report, the brokerage hosted the company's senior management for a non-deal roadshow in Singapore and returned with 'greater conviction on the company's growth trajectory, with both volume drivers and margin levers appearing robust'. The positive stance reflects Emkay's confidence in the company's operational performance and strategic initiatives, with the broader market benefiting from positive sentiment as Nifty and Sensex both gained 0.14% on the day.
The research highlights that Hyderabad, the company's core market, continues to deliver 'high double-digits' growth, driven by 'continued market-share gains and network expansion in newer clusters within Hyderabad'. As reported by Emkay Global, the management plans to replicate the Hyderabad densification playbook in its non-core clusters (Karnataka and West Bengal), which should aid in delivering higher growth in the medium term. In Bengaluru, the company has already seen encouraging early signs, with its first two hubs achieving breakeven in less than a year.
According to the report, Pune integration took longer than expected, as focus was on internal controls and standard operating procedures rather than growth. However, 'organic growth is now in double-digits', supported by two recently added hubs. With integration now complete, Pune is expected to deliver growth in line with overall company growth. The brokerage noted that 'Pune is now on a recovery path' and expects the city to contribute meaningfully to overall performance, with the positive operational momentum supporting the company's growth trajectory.
Emkay Global forecasts EBITDA margin expansion of ~135 basis points over FY26–28 after absorbing incremental investments in NGS capabilities and IT infrastructure buildout. The brokerage expects revenue and EBITDA to grow at a compound annual rate of 19% and 21% respectively during this period. With these positive factors, the firm retains its buy rating and target price of ₹1,400 for Vijaya Diagnostic, with operating leverage expected to help offset investments while the company remains well positioned to benefit from both expansion-led and structural growth drivers.
