Dr. Lal Pathlabs Ltd. share price target

We remain negative on the entire diagnostic chain with a belief of 1) premium players losing their market share to unorganized players, 2) B2B (40% of revenue) partners negotiating to partially offset their loss of profit, 3) Inability to hike prices causing lower realization level (Revenue/Patient) and 4) higher fixed costs (60-65% of operating cost for DLPL), new compliance expense and home collection of samples will lead to lower EBITDA margin. However even after increased estimate, we maintain SELL' recommendation but revised TP to Rs1,006 (from Rs895) on PE 40x of FY22E due to challenging...

28-30% of revenue compared to last year in Q1FY21E and gradual recovery from Q2FY21E. As per the management, 60-65% of DLPL's total operating cost is fixed in nature and the new additional expense (cost of safety for...

DLPL's strong business model led to a revenue growth of 16.2% CAGR over FY15-19, supported by rise in sample collection (~18.6% CAGR; backed by large network of PSCs 1,600 and PUPs) along with growing number of patient served (+15.5% CAGR). Company's 1,200 Hub and Spoke model (centralized diagnostic testing) offers economies of scale and 800...

Dr Lal PathLabs (DLPL) Q1FY20 earnings came marginally higher than our estimates on account of improved revenue contribution from regions constituting

DLPL's revenue, adj. EBITDA and PAT grew 15%, 21% and 19% YoY Change in Estimates | Target | Reco With strong cash flow and growth in new customers and packaged offer, the...

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.