Krsnaa plays melodious tune

Krssna Diagnostics is up and buzzing today after after the High Court of Rajasthan passed an order in favour of the company and its consortium partner, Telecommunications Consultants India Ltd. (TCIL).

This is a new Letter of Acceptance (LoA) from the National Health Mission (NHM), Rajasthan.

This LoA pertains to providing laboratory services across the state under NHM’s Free Diagnostics Initiative, implemented through a HUB and SPOKE model.

In line with the court’s directive, the Government of Rajasthan has now issued a fresh LoA, which has been officially received by the company. Krsnaa Diagnostics and TCIL will move forward with entering into the agreement with the NHM.

While initial setup may involve front-loaded capex and operational ramp-up, medium-term benefits include strong volume growth and service-linked earnings.

The stock price is in the green since the morning; from its close of Rs.740, the stock opened much higher at Rs.769.65 and went on to an intraday high at Rs.789.10 and currently it is just about holding on to the green.