Dr Lal PathLabs Share Price: Shares of Dr Lal PathLabs jumped 2.32 per cent in early trade on Wednesday to trade at Rs 2,413.50. The surge comes a day after a sharp drop of around 5 per cent in the share prices of the company amid reports that the Delhi government has decided to provide 450 types of medical tests free of cost from January 1. The scrip had closed at Rs 2,358.80 in the last trading session.

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Meanwhile, brokerage firm UBS has maintained a buy call and set a target of Rs 2,800. 

According to the brokerage firm, there will be a minimal impact of the Delhi government's decision to provide free testing.

"80-90 per cent of testing requirements are already being met and the impact of additional free testing by Delhi government will have minimal impact," the brokerage firm said.

It is to be noted that Dr Lal PathLabs drives around 20-25 per ecnt of revenue from Delhi only.

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 that 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 the level of Rs 2493.

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