After much fanfare both Dr Lal Path & Thyrocare have fallen significantly. However by plain intuition, diagnostics seems to be a long runway, non discretionary esp considering 1.3 bn population and slowing getting towards 35+ mean age. Also Lal Path, Thyrocare and SRL seems to have good brand recall. Considering low cost of test and good pricing power, the fall of stock price is indeed counter intuitive.
Also, looking at financials of both, there is no reason to doubt on fundamentals. Market is discounting technology disruption & govt regulations beyond reasonable levels, IMHO. Healthcare is a fundamental need and it will only increase with ageing population.
|Name||Dr Lal Pathlabs||Thyrocare Tech.|
|Qtr Sales Var %||14.17||16.98|
|Qtr Profit Var %||12.77||12.66|