DR LAL PATHLABS SHARE: TARGET ACHIEVED!!!

Hello and welcome back to one more interesting article wherein we’ll discuss Dr Lal Pathlabs share which was analysed earlier and has achieved the target predicted by us in a span of 5 sessions.

Let’s check the parameters which helped Dr Lal Pathlabs share to achieve its total target of 24% approximately in 27 trading sessions.

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT

The company conducted 11.4 lakh RTPCR tests and served around 7.1 million patients in these challenging times.

Dr Lal Pathlabs acquired Suburban Diagnostics in an all cash deal with an enterprise value of ₹ 925 Cr and a market cap of ₹ 1,150 Cr  which has a great presence in western India.

To strengthen the business in south and western parts of India, the company has launched a new reference lab at pilot phase in Bengaluru and also 6 new satellite labs in the region across six different cities.

Dr Lal Pathlabs is expecting non covid business to grow atleast 14-15% in financial year 2022.

The company is a firm believer that the future of healthcare business is going to revolve around “PHYGITAL” patient journey, which is a combination of physical and digital infrastructure. Hence, the company is betting on technology investments and is not worrying for immediate returns.

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT

QUARTERLY RESULTS:   

Figures in Rs. Crores

Quarterly Results	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Sales	335	366	328	302	266	432	452	431	607	498
Expenses	240	257	246	244	218	305	314	309	418	357
Operating Profit	95	109	82	57	48	127	139	122	189	142
OPM %	0.28	0.3	0.25	0.19	0.18	0.29	0.31	0.28	0.31	0.28
Other Income	14	15	14	12	11	13	14	14	14	14
Interest	4	4	4	4	4	4	4	4	5	5
Depreciation	16	18	19	20	18	20	20	20	19	20
Profit before tax	89	102	73	45	38	117	129	111	179	131
Tax %	0.34	0.21	0.25	0.28	0.25	0.25	0.26	0.23	0.25	0.26
Net Profit	59	80	54	32	28	85	94	83	131	95
EPS in Rs	7.06	9.66	6.49	3.9	3.41	10.23	11.34	10.01	15.74	11.4

For the quarter ended 30-09-2021, the company reported a sales of ₹ 498 Cr which is an increase of 13% from the sales registered in the year ago period.

Expense has reduced from the previous quarter which has also impacted the sales of the company.

In quarter ended 30-09-21, the net profit is consolidating in the range of ₹ 83 Cr to ₹ 131 Cr.

BALANCE SHEET:

Reserves have increased exponentially and there is a great interest shown by the investors in Dr Lal Pathlabs share.

In the quarter ended 30-09-21, the company has borrowed ₹ 41 Cr which could be due to the acquisition, the company has done recently.

Figures in Rs. Crores

Balance Sheet	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Sep 2021
Share Capital	5	5	80	81	83	83	83	83	83	83	83
Reserves	111	157	151	260	424	512	734	890	974	1182	1288
Borrowings	0	0	1	0	0	0	0	0	0	0	41
Other Liabilities	63	108	146	161	119	95	98	117	317	396	443
Total Liabilities	177	269	352	475	625	690	916	1091	1374	1661	1856
Fixed Assets	108	127	140	150	166	152	208	209	413	447	460
CWIP	6	1	0	1	4	18	10	3	11	10	6
Investments	5	55	9	38	64	106	145	185	164	59	128
Other Assets	58	87	203	286	391	414	554	694	786	1144	1261
Total Assets	177	269	352	475	625	690	916	1091	1374	1661	1856

SHARE HOLDING SYNOPSIS

Share Holding	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Promoters	56.91	56.91	56.91	56.81	56.77	56.32	55.23	55.23	55.23	55.23	55.23
FIIs	17.75	19.3	20.12	20.34	20.01	19.95	22.42	24.37	26.01	26.42	26.82
DIIs	8.42	9.23	10.1	10.07	9.94	10.28	9.62	8.84	7.52	6.54	5.73
Public	15.72	13.37	11.73	11.69	12.23	12.42	11.77	10.65	10.37	10.96	11.42
Others	1.2	1.19	1.14	1.09	1.04	1.03	0.96	0.91	0.87	0.85	0.8

 Promoters have maintained their position in this stock with a whopping 55.23%.

FIIs have increased their stake in this company, but the retail investors are reducing their interest in the stock which is not a sign of great concern.

Now, let’s deep dive into the technicalities of Dr Lal Pathlabs share.

CHART PATTERN ANALYSIS

In the previous analysis, we did highlight the formation of the cup and handle pattern.  

Click here for previous analysis on Dr Lal Pathlabs share.

Dr Lal Pathlabs share did achieve its target of ₹ 3,880 and rallied till ₹ 4,246 showcasing a target achievement of 24%.

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