Dr. Lal PathLabs Limited.docx

Importantly north india continues to grow in midteens

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Importantly, North India continues to grow in midteens with UP and other parts of North India outpacing steady growth in the mature cluster of Delhi-NCR. Gross margins at 78.4% were largely in line with our estimates. Historically, DLPL has had a minimal focus on the segment, with bundled packages contributing only 7-8% to its FY2017 revenues. DLPL has now sharpened its focus on this division, dedicating higher resources along with aggressively promoting its ‘Swastha’ health packages and other bundled tests.
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Getting a brief diagnosis of the above trends, the company has posted robust growth in 2018.  With strong cash flow and growth in new customers, the company expects to maintain current growth in FY19E. In past two years, diagnostic sector witnessed heightened competitive intensity with private equity capital enabling subscale players to get aggressive in the market. The P/E ratio of the company has constantly been declining which shows the price of the shares in undervalued. However, the company is able to increase its earnings potential. It has strong fundamentals which predicts a bullish stock for the investors.
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  • Fall '17
  • ..
  • Revenue, Generally Accepted Accounting Principles, Dr. Lal Pathlabs

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