Dr. Lal Path Labs Ltd.
NSE: LALPATHLABDr. Lal Path Labs Ltd.: A 30-second snapshot
Dr. Lal PathLabs (1602.9) is a listed diagnostics chain in the Pharma sector, up 16.3% over 1 year and trading above its 50-DMA (1416) and 200-DMA (1496) with RSI at 63.1. Trailing PE of 50.3x compresses to a forward PE of 38.6x, and the business has delivered 16.6% revenue CAGR over 5 years, though 5-year earnings CAGR is -15.4% due to margin compression. Debt-to-equity stands at 7.83 with a falling trend; ROE is 21.5% on a trailing basis.
P/E
50.3
Forward P/E
38.6
ROE
+21.5%
Debt / Equity
7.83
Profit Margin
+18.3%
Div. Yield
+0.9%
5Y ROE > 15%
3/5
5Y FCF > 0
3/5
Quality
65/100
News
7 headlines · 6 positive · 0 negative
Dr. Lal PathLabs Completes Full Purchase Of Shahbazkers Diagnostic Centre - scanx.trade
scanx.trade
Dr. Lal PathLabs clears FY26 results, dividend and Dubai expansion as it acquires Shahbazkers Diagnostic Centre - TipRanks
TipRanks
Dr. Lal PathLabs Limited completed the acquisition of Shahbazkers Diagnostic Centre Private Limited. - marketscreener.com
marketscreener.com
Dr. Lal PathLabs Limited agreed to acquire Shahbazkers Diagnostic Centre Private Limited for INR 200 million. - marketscreener.com
marketscreener.com
Dr Lal PathLab Standalone March 2026 Net Sales at Rs 675.20 crore, up 16.98% Y-o-Y - Moneycontrol.com
Moneycontrol.com
Recent context
- ·Dr. Lal PathLabs completed the acquisition of Shahbazkers Diagnostic Centre (INR 200 million) in late April–early May 2026, signalling continued inorganic expansion in its diagnostics network.
- ·Q4 FY26 standalone net sales came in at 675.2 crore, up 17.0% year-on-year per Moneycontrol data, sustaining the revenue growth trajectory reported in the 5-year CAGR.
- ·The company also announced a Dubai expansion alongside FY26 results, suggesting international diversification is part of the near-term strategic agenda.
Strengths
- +Highest trailing ROE among the 4 Pharma peers where ROE data is available — 21.5% vs Cipla 11.7% and Dr. Reddys 11.8% — indicating stronger returns on the equity base.
- +Revenue has grown at 16.6% CAGR over 5 years, demonstrating consistent top-line expansion in the diagnostics segment.
- +Debt trend is classified as falling, and profit margin of 18.3% remains healthy in absolute terms relative to the broader Pharma peer set.
- +Forward PE of 38.6x represents a 23% compression from the trailing PE of 50.3x, reflecting the market pricing in near-term earnings recovery.
Weaknesses
- −5-year earnings CAGR of -15.4% despite strong revenue growth is a fundamental concern: the business has not converted top-line scale into profit growth over the period.
- −Debt-to-equity of 7.83 is materially elevated for a diagnostics services business, and with FCF positive in only 3 of the available years, the cushion against debt servicing stress is limited.
- −Consistency score of 68 and quality score of 49 (3rd of 6 Pharma peers, ranked 4th on PE) reflect mid-pack rather than top-tier fundamental quality within the sector.
- −Trailing PE of 50.3x is above sector-median — peers like Dr. Reddys (26.7x) and Cipla (29.8x) trade at significant discounts — placing a premium multiple on a stock with a declining earnings trend.
Open questions
- ?Does the gap between 16.6% revenue CAGR and -15.4% earnings CAGR reflect one-time acquisition and integration costs that are winding down, or a structural shift in the unit economics of the diagnostics business?
- ?At a D/E of 7.83 that is trending lower, what is the timeline and mechanism for deleveraging, and how does the Shahbazkers acquisition and Dubai expansion affect the debt trajectory?
- ?How does the 50.3x trailing PE compare historically to LALPATHLAB own PE range, and what earnings growth rate does the forward PE of 38.6x implicitly assume?
- ?Is the ROE of 21.5% calculated on an equity base that has been diluted or written down in ways that flatter the ratio, given the negative earnings CAGR over 5 years?
Peer comparison: Pharma
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LALPATHLAB | Dr. Lal Path Labs Ltd.You're viewing | 50.3 | +21.5% | 49 |
| Industry avg | across 5 peers | 46.9 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.4 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.5 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.7 | +11.8% | 17 |
Technical state
Current price
₹1,602.90
SMA 50
₹1,416.40
SMA 200
₹1,496.12
RSI (14)
63.1 (neutral)
From 52w high
-9.0%
1Y return
+16.3%
3M return
+11.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- high5-year earnings CAGR of -15.4% against 5-year revenue CAGR of 16.6% signals structural margin erosion: top-line growth has not translated into profit growth over the measurement period.
- mediumDebt-to-equity of 7.83 is elevated for a diagnostics-services business; the trend is falling but the absolute level remains high relative to FCF generation over the available years.
- mediumROE exceeded 15% in only 3 of the available years and FCF was positive in only 3 of the available years; consistency score of 68 and quality score of 49 (3rd of 6 Pharma peers) limit confidence in earnings persistence.
- lowNews sample is sparse at 7 articles with all items clustering around the Shahbazkers acquisition, leaving other recent corporate developments unassessed.
Cross-section contradictions
- Revenue has compounded at 16.6% over 5 years while 5-year earnings CAGR is -15.4% — a divergence indicating that cost growth, integration spending, or price-mix changes have more than offset top-line expansion.
- The stock is up 16.3% over 1 year and trades above both the 50-DMA (1416) and 200-DMA (1496), yet the 5-year earnings trend is materially negative — price appreciation has not been driven by earnings growth over the same horizon.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days