Shares of Dr Lal PathLabs are in focus after CLSA maintained an Outperform rating on the stock with a target price of ₹1,660, citing steady performance and visibility on volume-led growth.
CLSA said the company’s revenue was in line with consensus, driven primarily by growth in sample volumes. The brokerage noted that EBITDA margin came in marginally higher than estimates, supported by an improved product and geographic mix.
The brokerage added that the company expects organic growth of 11–12% going forward, largely driven by volumes, with no price hikes expected over the next few quarters.
Based on this outlook, CLSA expects sample volumes to grow at a compound annual growth rate of around 10%, while realisations are seen growing at approximately 2% CAGR over FY25–FY28.
At the current market price of ₹1,425.10, CLSA’s target price of ₹1,660 implies an upside of around 17%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.
