Dr. Lal Pathlabs Ltd. share price target

DLPL's revenue, adj. EBITDA and PAT grew 11%, 16% and 27% YoY Change in Estimates | Target | Reco respectively in Q3FY19 and in line with our estimates in margin and earnings. With strong cash flow and growth in new customers and packaged offer, the...

Revenue grew by 5.99% to Rs. 219.9 Cr in Q4FY17 when compared to the previous quarter

growth from ~ 12.0 mn in FY16 to ~ 13.3 mn in FY17 as well as a better sales mix, resulting in improvement in realizations per patient from 660 in FY16 to 688 in FY17. While H1FY17 saw the company's revenues expand at a faster pace where it registered a...

cardiology tests & services in its quality laboratories which tested over 15.5 mn & 26.3 mn samples and 7.0 mn & 12.0 mn patients in H1 FY17 & FY16 respectively. Indian healthcare industry - a long term structural growth story At just ~ 4.0 % of GDP, India lags in healthcare spends with changes in demographics, increasing incomes, rising penetration of healthcare & medical insurance and opportunities from medical tourism expected to boost demand for the ~ 3.8 tn Indian healthcare delivery industry. This primary demand driver for diagnostic services is expected to grow at ~ 12.0 % CAGR to ~ 6.9 tn by FY20....

Strong growth and margin expansion in Q2FY17 on YoY basis: The company has grown into a national level lab with a hub-and-spoke model, that handled 15.5 Mn samples in H1FY17. On an average 7.04 Mn patients are depending on DLPL for the trusted accurate results. Post monsoon period,seasonal vector bound fevers like malaria, dengue, chikungunya contributed 2% to the volume growth and 3% to the revenue during the quarter. DLPL posted agood revenue growth of 21.5% YoY to Rs.2622 Mn in Q2FY17.

Strong Position in North India, Expanding in South and West Regions: Dr. Lal Path Labs is the second largest diagnostic chain in domestic market with healthy balance sheet and strong cash flows. The company gets 72% of revenue from North India, and is concentrating more on an engagement model between thecompany and the clients. The future acquisitions and partnerships would provide operating synergies and basis for organic growth in these new regions.

Strong Position in North India, Expanding in South and West Regions: Dr. Lal Path Labs is the second largest diagnostic chain in domestic market with healthy balance sheet and strong cash flows. The company gets 72% of revenue from North India, and is concentrating more on an engagement model between thecompany and the clients. The future acquisitions and partnerships would provide operating synergies and basis for organic growth in these new regions.

Dr Lal PathLabs is one of the largest companies in the Indian diagnostic industry, having a market share of 12.0% amongst diagnostic chains. Its one of the fastest growing companies in the space with strong profitability. Dominant player in the industry: The company, according to our estimates, is the second largest player with an estimated ~12% market share in the organised diagnostic chains. It has grown at a CAGR of 20.7% over FY2013-15, primarily driven by volumes which grew 16.7% during the period, while the rest was on back of pricing power. Thus, given the companys dominance in its industry and its cash flows (~Rs148cr cash on the books of the company as of FY2015), we believe that the company can easily leverage growth in the diagnostic healthcare services industry in India, which will grow by a CAGR of 16-17% till FY2018. Strong financials: The company has strong business fundamentals, which are reflected in its financials. It has exhibited a strong 20.7% CAGR on the sales front over FY2013-15, predominately led by volumes and partially on the back of pricing power. On the profitability front, the company has maintained healthy and steady margins in the range of 22-25%. The same...

Dr Lal PathLabs is one of the largest companies in the Indian diagnostic industry, having a market share of 12.0% amongst diagnostic chains. It's one of the fastest growing companies in the space with strong profitability. Dominant player in the industry: The company, according to our estimates, is the second largest player with an estima..

collected and processed approximately 21.8 million samples from Dr Lal Path Lab serves approximately 9.9 million patients. According to CRISIL Research, the size of the Indian diagnostic healthcare services industry was approximately Rs.377 billion (US$6.0 billion) in Fiscal Year 2015, and it is projected to grow to over Rs.600 billion (US$9.6 billion) by Fiscal Year 2018. We believe that the increasing prescription of diagnostic tests and services by healthcare providers in India, combined with the growing focus on early detection and prevention of chronic and lifestyle diseases, such as diabetes, hypertension, heart disease and cancer, creates a significant market...