Dr. Lal Pathlabs Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 18028.75 Crore) operating in Hospitals & Allied Services sector.
Getty ImagesPromoters held 56.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 24.2 per cent, DIIs 7.8 per cent and public and other 12.7 per cent.
ICICI Securities has given a buy rating to Cipla with a target price of Rs 2430. The share price moved down by 1.70 per cent from its previous close of Rs 2191.70. The stock’s last traded price is Rs 2154.45.
Dr. Lal Pathlabs Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 18028.75 Crore) operating in Hospitals & Allied Services sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 431.90 Crore, up 62.37 % from last quarter Sales of Rs 266.00 Crore and up 18.13 % from last year same quarter Sales of Rs 365.60 Crore Company reported net profit after tax of Rs 87.10 Crore in latest quarter.
Investment Rationale The brokerage raises FY21-23 EPS estimates by 3-10% to factor in higher revenue from COVID-19 tests in FY21E, faster recovery in volumes and better margin as seen in Q2FY21. However, considering recent rally in stock which has limited upside potential, it downgrades Dr Lal to ADD from Buy with a revised DCF-based target price of Rs2,430/share (earlier: Rs2,142/share) implying 50.8xFY23E EPS and 32.1xFY23E EV/EBITDA. Key downside risks: Higher-than-expected competition, pricing pressures and prolonged impact of COVID-19.
Promoter/FII Holdings Promoters held 56.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 24.2 per cent, DIIs 7.8 per cent and public and other 12.7 per cent.
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