Dr. Lal Pathlabs Shares Upgraded By HDFC Securities — Check Target Price, Potential Upside And More

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HDFC Securities Institutional Equities

HDFC Securities has upgraded Dr. Lal Pathlabs Ltd. to 'Buy' rating from Add, revising the target price to Rs 1,740 (current market price Rs 1,428), citing strong volume-led growth visibility and steady margin outlook.

The brokerage expects Dr. Lal to sustain revenue momentum through-

1. patient and sample volume growth without price hikes,

2. rising contribution from wellness packages (Swasthfit share at 26.5% in H1 FY26 vs 24% in FY25),

3. portfolio innovation in genomics, oncology, and autoimmunity, and

4. expansion into tier-2/3 cities and southern markets.

Steady outlook:

Over FY19-25, Dr. Lal has delivered a 13% sales CAGR and a 15% Ebitda CAGR. Looking ahead, the brokerage expects an 11% sales CAGR for FY25-28E and a stable Ebitda margin of ~28.5% in FY28E (from 28.3% in FY25), resulting in a 12% Ebitda CAGR and a 15% EPS CAGR over FY25-28E.

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