HDFC Securities sets Dr Lal Pathlabs target at Rs 2,910

HDFC Securities has given an "add" recommendation for Dr Lal Pathlabs, setting a target price of Rs 2,910. Currently, the market price for the company is Rs 2,566. For the quarter ending December 31, 2024, Dr Lal Pathlabs reported a total income of Rs 621.80 crore. This is an 11.59% increase compared to the same quarter last year, but a decline of 8.84% from the previous quarter. The company also reported a net profit after tax of Rs 98.10 crore for this period. Dr Lal Pathlabs operates in the Hospitals & Allied Services sector, with a market capitalization of Rs 21,380.49 crore. The firm has been facing challenges in the diagnostic sector, leading to a decrease in valuations. HDFC has adjusted its estimates based on current earnings growth trends. The company is trading at a price-to-earnings ratio of 42x, which is below its long-term average of 49x. HDFC projects growth in patient and sample volumes over the next couple of years. As of December 31, 2024, promoters hold a 53.91% stake in the company, while foreign institutional investors hold 26.82% and domestic institutional investors 12.87%.