Dr Lal PathLabs shares jump 8% post strong Q4 results; brokerages divided

Dr Lal PathLabs share price target: Dr Lal PathLabs shares jumped over eight per cent on Monday, May 13. The positive trend in the counter followed after the diagnostics company reported its strong Q4 earnings results on Friday post-market hours. The stock rose as much as 8.18 per cent to the day's high of Rs 2,540 on NSE in morning deals. The counter closed at Rs 2,491.05, up 6.1 per cent on NSE.

Dr Lal PathLabs Q4 results

The New Delhi-headquartered firm reported a consolidated net profit of Rs 84.5 crore for the January-March period, an increase of 49 per cent compared with the corresponding period a year ago. The opening of new labs and growing demand for medical tests boosted the company's profitability.  

Dr Lal PathLabs registered year-on-year growth of 11.1 per cent in revenue to Rs 545.4 crore for the quarter ended March 31, 2024, according to a regulatory filing.

Dr Lal PathLabs share price target: Brokerages mixed

CLSA has double-upgraded Dr Lal PathLabs to an outperform rating from an underperform rating earlier. The global brokerage has raised the target to Rs 2,590 from Rs 2,510. The brokerage highlighted the following key points in its note:

• 4QFY24: In line revenue, beat on margin and PAT
• Guided for double-digit revenue growth in FY25
• Swastfit bundled tests and pan-India expansion should drive growth 

Morgan Stanley has maintained an overweight call with a target of Rs 2,681. Morgan Stanley stated the following points: 

• Q4 witnessed better traction, both on patient and test volumes.
• Management is turning positive on industry trends and expects growth momentum to continue in F25
• Prefers DLPL for its strong execution, plus valuations appear favorable

Nomura has maintained a neutral call with a target of Rs 2,505. 

On the flip side, Goldman Sachs has maintained a sell call with a trimmed target to Rs 2,150 from Rs 2,200. Here's what Goldman Sachs highlighted in its note:

• Subdued vol growth despite favorable base; guidance implies growth to remain below pre-Covid levels
• EBITDA margins at 26.5 per cent, (+156bps yoy)
• Believe the emergence of credible competition in co’s key regions led to structural vol decline

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