Good show by Dr Lal Path. It would be crucial to listen to management’s commentary about the resuls.
4 Likes
The non covid revenue growth is around 10% and PAT margins have improved to 15%.
However does the current valuation justify 10% growth?
Or is it due to increase in competition has resulted into decrease in growth and high single digit growth will be the norm.
Kindly share your opinions.
Thank you
How I perceive this valuation:
-
The company is net debt free and pays dividend regularly. This provides mental stability for investors.
-
The industry is still dominated by unorganized players, so the shift to organized is a given and the growth can be seen for a long time duration ( > 10 years).
-
The more the market dominance, the better would be their margins going forward. As per recent concall, the competition is slowly cooling down and reverting back to mean. One can scuttlebutt on this more.
-
They are trying to expand their suburban business and make more efficient. Once it stabilizes, it will give a boost.
No reco, invested.
3 Likes
Good quarterly result by Dr Lal Pathlabs.
Source - https://www.bseindia.com/xml-data/corpfiling/AttachLive/b2c675f3-8b1c-4538-b0d7-ba066ab36542.pdf
Note - Invested
3 Likes
Looks good results.
Other Income has jumped from 9 to 18 Cr, OPM has improved to about 30% from 27% Y-o-Y, Tax % has reduced from 30% to 27%.
Also, on Yearly basis Net Profits are up by 22% at TTM level.
Inflation related pressure on margins is now under control, and may continue to reduce further in FY24.
I have done an analysis of Dr. Lal. Any feedback would be appreciated. Learnt a lot from this thread through the years.
1 Like