Krsnaa Diagnostics shares soar on network expansion

Shares of Krsnaa Diagnostics surged on March 14 after the company announced that it has operationalized 100 pathology centers in Mumbai.

The operationalization of these additional pathology centers came after the company won the tender to provide lab investigation services under "Hinduhridaysamrat Balasaheb Thakeray Chikitsa" for BMC dispensaries and hospitals in Mumbai back in January.

At 09.56 am, shares of Krsnaa Diagnostics were trading at Rs 399 on the National Stock Exchange, with gains of 4.14 percent from the previous close.

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"With this, the company has operationalized 300 Pathology collection center as on the date of this disclosure," Krsnaa Diagnostics announced in an exchange filing.

Krsnaa Diagnostics' network expansion is in line with the industry trend of increasing presence across geographies to boost market share and non-COVID revenues. The company also has plans to open new centers in Uttar Pradesh, Delhi, Maharashtra, and Rajasthan.

Other competitors in the diagnostics industry, such as Dr Lal Path Labs, Vijaya Diagnostics, and Metropolis Healthcare, are also focused on adding new labs and collection centers. Metropolis Healthcare plans to establish 90 new labs and 1,800 new collection centers by FY25, while Vijaya Diagnostic aims to expand its presence in the south and east markets. Dr Lal Pathlabs is targeting a higher market share in the west and south markets by expanding its presence in Tier II and Tier III cities.