52-week high alert: UBS projects 20 per cent upside on improvement in patient volume growth; Do you own it?
The stock has experienced significant buying activity, yielding returns of more than 23 per cent in the last one year.
Today, the shares of Dr. Lal PathLabs Limited soared by 0.65 per cent. Additionally, the stock hits fresh 52-week high mark of Rs 2,996 per share. Furthermore, the scrip witnessed a spurt in volume by more than 1.80 times. The company's current market capitalization standing at Rs 24,425.52 crore.
Stock performance:
On Tuesday, the stock opened at Rs 2,949.90, with the previous closing being Rs 2,907.10. The 52-week high and low are Rs 2,996 and Rs 1,943.20, respectively as per BSE.
Recent Development:
According to a popular brokerage firm, In FY23 the healthcare services provider saw a 1.5 per cent decline in patient volume growth, but in FY24, it grew by 2.6 per cent. They believe that the concern about low patient volume growth will likely diminish, predicting Dr. Lal Pathlabs can achieve 6-7 per cent patient growth.
UBS noted that faster growth in tier 3+ cities indicates an increase in Dr. Lal Pathlabs’ market share and potential for further expansion. The report also highlighted that improving profitability is allowing the company to reinvest in growth through increased marketing and services like home sample collection.
The brokerage expects Dr. Lal Pathlabs’ growth to continue, driven by new labs and centers. UBS has also increased its earnings estimates for FY25-26 by 7-8 per cent.
About the Company:
Dr. Lal PathLabs Limited is a prominent name in India's consumer healthcare sector, specializing in diagnostic services. It operates a comprehensive nationwide network that provides a wide array of diagnostic tests and related healthcare services. These services cater to individual patients, hospitals, healthcare providers, and corporate clients. Dr. Lal PathLabs focuses on core testing, patient diagnosis, and offers services for disease prevention, monitoring, and treatment.
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Shareholding Pattern:
During the period from December 2023 to March 2024, foreign institutional investor (FII) holdings in the company saw a significant rise of 25.36 per cent to 26.15 per cent. This increase indicates growing confidence among foreign investors, which in turn boosts the confidence of domestic investors in the stock.
Furthermore, the stock has experienced significant buying activity, yielding returns of more than 23 per cent in the last one year.
Disclaimer: The article is for informational purposes only and not investment advice.