Molbio Diagnostics IPO is analyzed as a good long-term prospect due to its recurring revenue model, WHO approval, and growth potential, despite concerns about promoter benefit from the IPO funds.
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Molbio Diagnostics IPO | Analysis | GMP | Review
Aug 8, 2026
The creator analyzes the Molbio Diagnostics IPO, noting its valuation of ₹9000 crore and a ₹940 crore raise, with ₹200 crore going to the company for R&D and machinery, while the rest benefits promoters and existing investors. The company manufactures diagnostic machines and test kits for diseases like TB and HIV, employing a recurring revenue model similar to HP's printer and ink. It has WHO approval for TB diagnostics and generates 90% of revenue from India. While the balance sheet shows significant debt, the company's investment in new machines and patents, along with growing revenue and profit, is positive. Production capacity is underutilized, indicating future growth potential. The valuation appears reasonable compared to competitors, and its unique recurring revenue model and WHO approval make it stand out. The creator views it as a good long-term prospect, with market valuation post-listing to be determined.
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