Hello and welcome back to one more article wherein we would analyze Dr Lal Pathlabs share price in the best possible way through Business, Fundamental and Technical analysis.
So, the stock for today is Dr Lal Pathlabs.
Now let’s discuss the business aspect of Dr Lal Pathlabs.
Table of Contents
BUSINESS ANALYSIS
Dr Lal Pathlabs is an international service provider of diagnostic and related healthcare tests.
Dr Lal Pathlabs was started in 1949, by the late Dr S.K Lal.
The first laboratory was set up by Dr S.K Lal in Delhi, India.
The main operation of Dr Lal Pathlabs deals with the performing of diagnosis and testing, including routine tests(including blood tests), specialized tests (e.g. Viral and bacterial infection tests) and preventive screenings.
In 2013, Dr Lal Pathlabs was awarded Best Diagnostic Service Company by VC Circle.
VC Circle started Dr Lal Pathlabs has been able to create a brand with scale in a fragmented market.
In 2014, Dr Lal Pathlabs acquired the APL clinical Institute of clinical laboratory and Research Private limited.
A national ‘hub and spoke’ network is built by the company which contains National Reference Laboratory in New Delhi and Regional Reference lab in Kolkata.
The catalogue of services includes 455 test panels, 2537 pathology tests and 1961 radiology and cardiology tests.
Now, coming to financial of the Dr Lal Pathlabs.
FINANCIAL ANALYSIS
The Market Capitalization of Dr Lal Pathlabs limited is Rs 28,692 Cr.
The Dr Lal Pathlabs has a price to earnings ratio of 98.3 which is higer than industry price to earnings ratio of 44.0.
The P/E ratio is higher but that doesn’t mean the stock is overvalued.
The Dr Lal Pathlabs has a return on capital employed of 35.4% which is pretty awesome and shows their expanding character.
The return on equity is 25.1% which is also decent as per the valuation of Dr Lal Pathlabs share price.
The debt to equity ratio of Dr Lal Pathlabs is 0.00 which indicates that the company does not have any loans and can utilize the cash flow for the company’s development process.
Company has been maintaining a healthy dividend of 42.18%.
Dr Lal Pathlabs has a good profit growth of 29.2%.
Based on market capitalization, Dr Lal Pathlabs stands tall at 2nd position and operates in Hospitals and Allied Services Sector.
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020, Mar 2021) the sales of Dr Lal Pathlabs have increased from Rs 266 Cr to Rs 431 Cr.
Dr Lal Pathlabs have radically increased its operating profit from Rs 48 Cr to Rs 122 Cr in the past 4 quarters (Jun 2020, Sep 2020, Dec 2020, Mar 2021)
The earnings per share of the company is Rs 10.01.
The Net profit also increased from Rs 266 Cr to Rs 292 Cr year on year.
The balance sheet of Dr Lal Pathlabs is also wonderful with zero borrowings.
The share capital of the company is Rs 83 Cr.
In the year 2021, the reserves have increased to Rs 1182 Cr from Rs 974 Cr in the year 2020 which indicates massive interest of investors into Dr Lal Pathlabs.
The net cash flow of the company is Rs 48 Cr.
Promoters have a holding of 55.23% till June 2021.
The Flls have a 26.42% holding.
The Dlls have a 6.54% holding while only 10.96% is with the public.
Others have a 0.85% holdings.
The company is in safe hands and their growth is amazing.
This is a brief overview of the financials of the Dr Lal Pathlabs which showcases the dominance in their respective market.
Now, let’s deep drive into the technical of Dr Lal Pathlabs.
Technical analysis is one of the important aspects of investing and trading which consists of technical chart patterns and technical indicators. The technical indicators like moving average and super trend helps to make an investors judgement more promising.
CHART PATTERN ANALYSIS
If we take a closer look on the chart in a daily time frame, we’ll be able to see a formation of cup and handle pattern.
A breakout is achieved, and the stock is retesting the resistance level and would make the resistance a support level as the financials are in the favor of Dr Lal Pathlabs share price.
The Dr Lal Pathlabs share price on 24th July 2021 is Rs 3,441 which would definitely change in the upcoming future.
MOVING AVERAGE
For Dr Lal Pathlabs share price analysis we are taken 9 days and 21days moving average.
Whenever the 9 days moving average is crosses the 21 days moving average there is an uptrend in the stock. Now the stock is in uptrend mood and would carry its momentum going forward.
The red line indicates the 9 days moving average while blue shows the 21days moving average.
SUPER TREND
In the above chart, super trend is indicating a buying signal which will help the investor in making his decision more accurate.
Image source: tradingview.com
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