Citi Research upgrades Dr Lal PathLabs DLPA.NS to “buy” from “sell”, raises PT to 1,650 rupees from 1,450 rupees
Brokerage says India’s diagnostics sector moved past COVID-era price wars to more rational competition
Says diagnostics firm has maintained pricing discipline with no broad hikes despite competition from standalone labs/hospitals
Expects co to deliver ~10–12% organic revenue growth during FY26-28, driven by core market gains, tier-3/4 cities expansion, richer mix of specialty offerings
Says margins should remain strong at 28–29%, supported by operating leverage, cost control, supply chain efficiencies
Robust, debt-free balance sheet supports growth, acquisitions; recent stock correction makes valuations attractive - Citi
Stock last down 1.8% to 1321 rupees in broader weak market; down 10.9% YTD