Buy Dr Lal Pathlabs; target of Rs 3100: Emkay

Emkay is bullish on Dr Lal Pathlabs has recommended buy rating on the stock with a target price of Rs 3100 in its research report dated July 20, 2025.

Broker Research

July 22, 2025 / 13:36 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay's research report on Dr Lal Pathlabs

Following the slump in FY23, DLPL has registered revenue/EBITDA/PAT CAGR of 10%/19%/43%, respectively, over the last two years. This superlative performance was, however, dampened by the exit of Dr Om Manchanda who, during his two-decade tenure as MD, fortified DLPL’s leadership position. The current management team, comprising of the CEO and CFO, brings nearly three decades of collective experience to the organization, ensuring stability and continuity. With their continued focus on the existing go-to-market strategy—centered around network expansion, portfolio addition, and bundled testing, we believe DLPL is well-positioned to capitalize on industry tailwinds and sustain its market leadership.

Outlook

We list below KTAs from the FY25 annual report. We reiterate BUY on DLPL with unchanged Mar-26E TP of Rs3,100, based on DCF methodology, and implying 2-year forward PER of 43x (vs LTA of 47x).

For all recommendations report, click here