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Check Before You Invest : Dr. Lal Pathlabs Ltd

BSE: 539524 NSE: LALPATHLAB ISIN: INE600L01024
  |   Sector:  Healthcare   |   Industry:  Hospital & Healthcare Services

Snapshot

Q.1 Which industry/sub-sector does Dr. Lal Pathlabs Ltd belong to?
Dr. Lal Pathlabs Ltd belongs to the Healthcare sector, operating specifically within the Hospital & Healthcare Services segment.
Q.2 Is Dr. Lal Pathlabs Ltd a good quality company?
Dr. Lal Pathlabs Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Dr. Lal Pathlabs Ltd undervalued or overvalued?
Dr. Lal Pathlabs Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Dr. Lal Pathlabs Ltd a good buy now?
Dr. Lal Pathlabs Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd revenue growth is 10.7% for FY-2025 , which is below its 5 year CAGR of 13.1% , indicating slower growth.
Q.2 Gross Profit margin of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.1% for FY-2025 , which is above its 5 year median of 29.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.39% for FY-2025 , which is above its 5 year median of 27.34% indicating increasing margins.
Q.4 Net Profit Margin of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Net Profit Margin is 21.15% for FY-2025 , is above with its 5 year median of 18.38%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 32.1 29.1
Operating Profit Margin 28.39 27.34
Net Profit Margin 21.15 18.38
Q.5 Return on Asset of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Return on Asset is 20.54%, which is above its 5 year historical median of 18.53%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Return on equity is 25.99% for FY-2025 , which is above its historical median of 25.93%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Return on capital employed is 31.99% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Cash conversion cycle is -24 days, below its historical median of -21 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.97 0.97
ROE 25.99 25.93
ROCE 31.99 31.99
Cash Conversion Cycle -24 days -21 days
Q.9 Debt to Equity ratio of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.22 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Dr. Lal Pathlabs Ltd?
Dr. Lal Pathlabs Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dr. Lal Pathlabs Ltd?
Promoters hold 53.21% of the Dr. Lal Pathlabs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dr. Lal Pathlabs Ltd vs industry peers?
Dr. Lal Pathlabs Ltd revenue CAGR is 13.05% , compared to the industry median CAGR of 1.49% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,351.6 144
Gross Profit 755 8.2
Operating Profit 665 8.4
Net Profit 497 5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.97 0.73
ROE 25.99 13.88
ROCE 31.99 17.77
Cash Conversion Cycle (days) -24.2 2

Valuation & price assessment

Q.1 Stock return of Dr. Lal Pathlabs Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 10.8% -0.8% 14.1% 3.6%
Q.3 Valuation ratios of Dr. Lal Pathlabs Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 45.89 79.05 79.71
Price to Book 9.4 15.21 3.54
Price to Sales 9.28 12.78 4.37
EV to EBITDA 27.53 43.94 18.04

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