Dr. Lal Pathlabs Q4 Results Review - Caution Warranted On Volume Growth: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Dr. Lal Pathlabs Ltd. reported 14% YoY growth in non-Covid revenue, and we reckon excluding Suburban, growth would have been in high single digit YoY in the non-Covid business. Management conveyed a more positive outlook for FY24 for volumes after a tough FY23 which saw accelerated competition; while intensity still remains, a look at commentary of various players might suggest discounting may not be increasing further. Dr. Lal Pathlabs has also taken a rare price increase in specialised and non-frequent rests in Feb which had a 1.5% impact in Q4 and ~2.5% impact for current year. Volume growth in the form of patient footfall still remains tepid as it has been distributed across new entrants and incumbents. We do not get comfort on volume growth beyond 8-9% for Dr. Lal Pathlabs even as growth comes in a similar range; so far, most incumbents have defended margins well and reckon that storm may have passed with pause on additional discounting, but volumes still remain a concern..Click on the attachment to read the full report:.Dr Lal PathLabs Q4 Results: Profit Fell, Misses Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Lal Pathlabs Q4 Results Review - Caution Warranted On Volume Growth: Yes Securities

Excluding Suburban, implied non Covid sales up 7.5% YoY on what was a weak base of Rs 4.2 billion last year

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