
Kotak Institutional Equities has upgraded Dr. Lal PathLabs (DLPL) to “Add” with a target price of ₹3,250. The upgrade comes after the recent underperformance of the stock. Despite ongoing leadership transition challenges, the company’s execution and strategy remain on track, which provides confidence for gradual recovery.
Additionally, pricing actions by competitors have been limited in 3QFY24, with Tata 1mg increasing prices in Mumbai and Delhi by 20%. This relatively steady competitive environment is expected to aid DLPL’s volume growth, particularly in Tier-3/4 towns and suburban regions. Analysts remain optimistic about the company’s long-term growth trajectory despite near-term headwinds.