Dr Lal Path Labs dips 5% after Delhi Government announces free medical tests from 1 January

by Kushal Gupta

Dr Lal PathLabs Ltd shares dropped sharply in Tuesday's trade amid reports that the Delhi government is set to provide 450 types of medical tests free of cost from January 1.

Reports indicated that the facility will be initially extended to government hospitals and mohalla clinics.

At 1.04 pm, Dr Lal PathLabs Ltd (NSE: LALPATHLAB) share price quoted at Rs 2,363.70, down 2.61 percent on NSE.

The diagnostic stock opened at Rs 2,428 and hit the day's low at Rs 2,324.05 in intra-day trade.

Arvind Kejriwal govt to provide 450 types of medical tests free of cost in Delhi from Jan 1, news agency PTI quoted official sources as saying.

As many as 212 tests are already provided free of cost, as per Zee Business sources.

Arvind Kejriwal govt to provide 450 types of medical tests free of cost in Delhi from Jan 1: Official sources

— Press Trust of India (@PTI_News) December 13, 2022

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The Delhi government has 39 hospitals, 201 dispensaries, 31 polyclinics and 520 mohalla clinics under it.Delhi is a key market for Dr Lal PathLabs with 34 percent share in FY22, as per a Zee Business research, while the diagnostic firm has 28 percent market share in the rest of north India. It has 15 percent and 14 percent market share in east and west, respectively, while it has 7 percent market share in south.

The company reported revenue of Rs 474.5 crore for the quarter ended 30 September 2022 while the net profit stood at Rs 78.6 crore according to data sourced from Trendlyne. The stock has seen a two-way trade this month and has corrected from level of Rs 2493. 

Source: NSE

Area                             FY22 Share

Delhi NCR                      34%

Rest of North India         28%

East                                15%

West                               14%  

South                              7%

International & Others     2%