Healthcare stock jumps 3% after securing 10-year PPP project from Government of Punjab

Synopsis: Chandan Healthcare’s stock rises after securing a ₹26 crore, 10-year PPP with Punjab Health Systems to set up advanced radiology centres in four cities. 

The shares of a Micro-Cap company, specialising in providing comprehensive diagnostic services, encompassing a wide range of pathology and radiology testing, jumped up to 3 percent after being awarded a 10-year Public Private Partnership (PPP) project from the Government of Punjab.

With a market capitalization of Rs. 716.45 crores on Monday, the shares of Chandan Healthcare Limited jumped upto 2.58 percent, reaching a high of Rs. 298.00 per share compared to its low price of Rs. 290.50 per share.

What Happened 

Chandan Healthcare Limited, engaged in providing comprehensive diagnostic services, encompassing a wide range of pathology and radiology testing, has been awarded a 10-year Public Private Partnership (PPP) project by the Punjab Health Systems Corporation, Government of Punjab.

The project is to develop, operate, and maintain advanced Radiology Imaging Diagnostic Centres in the state. The project of Rs. 26 crore will set up centres at District Hospitals in Pathankot, Gurdaspur, and Tarn Taran (each with a 3 Tesla MRI) and SDH Batala (with a 128-slice CT scan). 

The initiative aims to strengthen diagnostic services in government hospitals, improve access to advanced imaging for patients, and reduce the need to travel to other cities for such services, thereby supporting timely diagnosis and better treatment outcomes.

Mr. Amar Singh, Promoter and MD of Chandan Healthcare Limited, said, “We are pleased to be selected for this Public-Private Partnership in Punjab, expanding our collaboration with state governments to enhance public healthcare. This initiative will bring advanced radiology infrastructure to government hospitals, improving access to timely, quality diagnostics. Building on our PPP experience in Uttarakhand, we aim to strengthen healthcare delivery while diversifying our business mix and ensuring long-term revenue stability.”

Financial & Others

The company’s revenue rose by 23.6 percent from Rs. 110 crore in September 2024 to Rs. 136 crore in September 2025. Meanwhile, Net profit rose from Rs. 11 crores to Rs. 17 crores during the same period.

The company demonstrates strong profitability, with a return on equity (ROE) of 27.1% and a return on capital employed (ROCE) of 28.8%. Its consistent ROE track record over the past three years, averaging 29.5%, indicates efficient use of shareholders’ funds.

Along with it,  the company maintains a conservative capital structure with a debt-to-equity ratio of 0.48. Its valuation is reasonable, with a stock P/E of 26.7 compared to the industry average of 27.9, and a very low PEG ratio of 0.15, suggesting attractive growth potential relative to its earnings.

Chandan Healthcare Ltd. is a growing North Indian diagnostics provider offering pathology and radiology services (X-rays, CT, MRI) through a large network of labs and collection centres in Uttar Pradesh, Uttarakhand, and Rajasthan, also expanding into pharmacies and a multi-speciality hospital, aiming for significant growth in integrated diagnostic care. 

Since its inception in 1991, the company has earned the trust of over 30 million patients, serving more than 3 million annually. Driven by a commitment to quality, innovation, and integrity, the group continues to expand its reach and enhance healthcare accessibility across India. It’s known for its cluster-based model, comprehensive test menus, and recent expansion into public markets. 

Written by Sridhar J 

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