Dr. Lal Pathlabs Q4 Results Review - Subdued Volume Outlook: Yes Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Dr. Lal Pathlabs Ltd. guided to better FY25 growth than FY24 less the contribution from price hike (~3.5%). Implied volume growth appears to be around 6-7% based on guidance coupled with mix change that would drive hitherto unchanged early double digit growth expectation – only difference being we have cut FY25/26 volume estimate by 4-5% given the weak prognosis and bumped up realisation/patient to capture the upside from mix change. Dr. Lal Pathlabs to reinvest incremental Ebitda from operating leverage on expansion of labs which would preclude a significant improvement in margin. Continue to stick to our thesis of lack of volume growth being a major impediment to rerating of multiples which any way is elevated at ~46 times/38 times FY25E/26E basis. Believe rebound in volumes to above double digit would be a key rerating trigger and till such point we retain our negative view on the stock. Cut our target multiple to 40 times (from 50 times) earlier – bring it inline with that of Vijaya and persistent lack of volume visibility though roll over to FY26 largely negates the impact; our revised target price Rs 2,450 (earlier Rs 2,550) is based on 40 times FY26 earnings per share and acceleration in volumes would be key upside risk to our view..Click on the attachment to read the full report:.BPCL Q4 Results Review: Profit Misses Estimates Due To Lower Refining Margin.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Lal Pathlabs Q4 Results Review - Subdued Volume Outlook: Yes Securities

Dr. Lal Pathlabs to reinvest incremental Ebitda from operating leverage on expansion of labs which would preclude a significant improvement in margin.

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