Krsnaa Diagnostics shares hit a day’s high of Rs 598 today after the company signed a 15-year PET-CT deal in Punjab.

Here’s what triggered the move. Krsnaa Diagnostics has signed a concession agreement with the Punjab Health Systems Corporation, acting for the state’s Department of Health and Family Welfare.

The deal follows a Letter of Award dated 14 August, and covers the development and operation of PET-CT facilities at four government hospitals in Punjab.

The project will run under the Design, Build, Finance, Operate, Maintain and Transfer model, commonly known as DBFOT, and the concession period lasts 15 years.

This is Krsnaa’s first move into the PET-CT space, a segment the company had stayed away from until now, citing growing demand for such diagnostic services.

Revenue from this deal will not come as a fixed amount. Instead, it will depend on how many scans are actually performed and the user charges applicable at each hospital.

This cash based model means earnings could vary depending on how well the facilities are used over time.

The company said this move helps diversify its revenue base beyond its existing diagnostic business, while also building on its experience of working with state governments on similar public private partnerships across India.

Looking at the stock’s recent run, Krsnaa Diagnostics remains well below its 52 week high of Rs 894.40, touched in September last year. The stock had also slipped to a 52 week low of Rs 515 back in March this year.

As of 14:30 pm, Krsnaa Diagnostics shares are currently at Rs 548.75 on the NSE, up 2.30% for the day, moving between a low of Rs 545 and a high of Rs 598.

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