The earnings before interest, tax, depreciation and amortisation (EBITDA) was up 25.5 percent at Rs 109 crore, While EBITDA margin was up 250 bps at 29.8 percent.
Share prices of Dr Lal PathLabs added 4 percent intraday on November 11 as brokerages maintained buy rating on the stock after better Q2 numbers.
The company's consolidated Q2 net profit rose 41.4 percent at Rs 81 crore against Rs 57.3 crore while the revenue was up 15.1 percent at Rs 365.6 crore versus Rs 317.5 crore year-on-year (YoY).
The tax expense of the company stood at Rs 21.3 crore versus Rs 30.8 crore YoY.
The earnings before interest, tax, depreciation and amortisation (EBITDA) was up 25.5 percent at Rs 109 crore while the EBITDA margin was up 250 bps at 29.8 percent.
CLSA | Rating: Buy | Target: Raised to Rs 1,800 from Rs 1,330 per share
According to CLSA, the company's Q2 results were ahead of estimates with another quarter of strong volume growth.
The volume remains the point of focus and raise FY20-22 EPS estimates by 8-12 percent to reflect recent tax cuts, it added.
Citi | Rating: Buy | Target: Raised to Rs 1,700 from Rs 1,475 per share
The company reported another healthy quarter, with good volume growth and margin continues to improve despite falling share of DCNR in revenues, said Citi.
The industry dynamics have improved, and larger chains should continue gaining share.
It raised FY20-22 EBITDA & EPS estimate by 1-3 percent and 13-20 percent and raise target EV/EBITDA multiple to 28x from 25x.
Kotak Institutional Equities | Rating: Sell | Target: Rs 1,060 per share
The healthy revenue growth driven by ex-Delhi-NCR cluster, while Delhi-NCR growth remains muted, said Kotak Institutional Equities.
The earnings estimates for FY20-22 remain largely unchanged as company trades at rich valuations of 39X FY21e EPS, it added.At 09:26 hrs, Dr Lal PathLabs was quoting at Rs 1,504.30, up Rs 52.50, or 3.62 percent, on the BSE.
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