Buy Dr Lal Pathlabs; target of Rs 3250: Emkay Global Financial

Emkay Global Financial is bullish on Dr Lal Pathlabs has recommended buy rating on the stock with a target price of Rs 3250 in its research report dated January 30, 2025.

Broker Research

January 31, 2025 / 21:58 IST

BUY

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on Dr Lal Pathlabs

DLPL’s Q3FY25 results were largely in line with street/our estimates, with Swasthfit continuing to grow 25%+ YoY for six quarters. Return of double-digit revenue growth in DLPL’s core Delhi NCR offset the muted performance of Suburban (9% revenue growth with EBITDAM of 12.3%). With competition hiking prices (both online and organized chains), and the management continuing to prioritize volume growth over pricing, we build in 12% revenue CAGR over FY25-27E.

Outlook

Margins should remain stable with operating leverage and higher Swasthfit contribution offsetting the network investments. A strong net cash balance sheet, industry leading margins, and improving return ratios provide comfort on valuations. We retain BUY with revised down Dec-25E TP of Rs3,250 (4.4% cut, based on DCF), implying Dec-26E PER of 43x.

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