Dr Lal Pathlabs stock is in focus for its upcoming bonus and dividend rewards. JM Financial has suggested buy for target price of Rs 3,699. Here’s what analysts said:
DLPL reported healthy results for 2QFY26, with revenue/EBITDA/PAT growing +11%+/11%/+17% YoY, respectively. Revenue and PAT were in-line, while EBITDA was higher than estimates. However, margins remained flat YoY. Despite 2Q usually being a strong seasonal quarter, it was weak this year, and, the growth was supported by 5% YoY growth each in patient volumes and test volumes. Margins sustained due to 2% improvement in Swasthfit contribution YoY which is now at 26%, and a better case mix. The company continues to grow organically without any price hikes for last 2.5 years and is expected to remain doing so to the tune of ~11-12% YoY. This growth is primarily supported by network expansion in the core metro markets and deeper penetration in Tier 3 and Tier 4 towns with the addition of 15-20 labs each year since FY24. The company might consider price hike post Feb-26 once internal growth targets are achieved. It would then support a stronger growth in higher teens. We project a 11-12% organic top-line growth over FY26-28, and revise our margin estimates upwards for FY27/FY28 to 29%/29.5% respectively, backed by improving Swasthfit mix and integration of Suburban. Attractive valuations at -1SD, steady growth (11-12%) and margin improvement warrant an upgrade to BUY. We value DLPL at 48x PE target multiple and roll forward to Sep’27 TP of INR 3,699 (18% upside).