As per industry estimates, the healthcare industry growth is expected to continue at 12-14% . As part of health care sector, diagnostics including imaging based diagnostic services would grow at 16-17% over the next couple of years.

The growth in the industry is being driven by various factors including:

• Increase in evidence-based treatments
• Huge demand-supply gap
• Changing disease profiles
• Increase in health insurance coverage
• Need for greater health coverage as population and life expectancy increase
• Rising income levels make quality healthcare services more affordable
• Demand for lifestyle diseases-related healthcare services
• Increase in preventive health check ups

The diagnostics industry is witnessing a great deal of visibility and interest with more organized players driving regional growth. This is also resulting in gradual shift of the market from unorganized to more organized players thereby driving quality and efficiency standards.

Dr. Lal path Labs:

Dr. Lal Path Labs is one of the India’s largest diagnostic chains. With their vision of “Dedication to improve the health of patients through unsurpassed diagnostic insight” and mission of “Quality, Service & Innovation” it growing its business gradually YoY.

Pan India Coverage:  It has over 172 clinical labs (including National Reference Lab at Delhi),1,559 Patient Service Centers (PSCs) and 4,967 Pick-up Points (PUPs)*

Service Offerings: Catalogue of 1,110 test panels, 1,934 pathology tests and 1,561 radiology and cardiology tests

Profit After tax: PAT increased by 38% to 133.2 Crores

Return on Equity: Return on Equity is above 30% on average for last 4 years

Debt to Equity:

Dr. Lal Path is a Debt free Company. It’s D/E ratio is zero consecutively for 5 years.

Technical View:

DR. Lal Path Labs is currently in bearish phase. It is a good opportunity to accumulate stocks in 815-900 zone.