Dr. Lal PathLabs Limited (LALPATHLAB) AI Stock Analysis

• Market Cap: ₹235.94B
• Dividend Yield: 0.89%
• Average Volume (3M): 3.61K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 0.67
• Revenue Growth: 10.80%
• EPS Growth: 32.79%
• Country: IN
• Employees: 4,099
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 6.11
• Shares Outstanding: 167,551,030
• 10 Day Avg. Volume: 2,182
• 30 Day Avg. Volume: 3,614
• PEG Ratio: 1.15
• Price to Book (P/B): 9.21
• Price to Sales (P/S): 8.13
• P/FCF Ratio: 38.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,521.00 ▲(3.26% Upside)

Dr. Lal PathLabs' strong financial performance is the primary driver of its stock score, reflecting robust revenue growth and efficient cash management. However, the technical analysis indicates neutral to bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Revenue and Margins

Sustained revenue growth paired with high gross (~60.8%) and net (~19.8%) margins indicates durable unit economics and pricing strength in diagnostics. These margins support reinvestment in labs, service quality, and buffer against cost inflation, underpinning stable profitability over 2–6 months.

Cash Generation

Consistent operating cash flow and materially growing free cash flow show the company converts earnings into cash reliably. This funds capex for network expansion, modernization, potential M&A, and shareholder returns without heavy external financing, enhancing financial flexibility long-term.

Conservative Balance Sheet

A low leverage profile and strong equity base provide resilience and funding optionality. Conservative capital structure reduces refinancing and liquidity risks, enabling the company to invest in patient service centers, absorb demand shocks, and pursue strategic initiatives with lower financial strain.

Negative Factors

Moderate Revenue Growth Rate

A ~10.8% revenue growth rate, while positive, is moderate for the large diagnostics market. Slower top-line expansion can limit scale-driven margin improvements and constrain market-share gains versus faster-growing peers, potentially slowing long-term earnings acceleration and strategic options.

Suboptimal Return on Equity

The balance sheet notes ROE could improve, suggesting capital may not be optimally deployed for shareholder returns. This may reflect lower asset turnover, conservative pricing, or under-levered expansion, and unless addressed, could limit long-term return generation for investors.

Volume- and Network-Dependent Model

Reliance on test volumes, mix and network density creates structural exposure to demand swings, pricing pressure from hospitals/insurers, and regional competition. Maintaining turnaround times and investing in collection/network is capital-intensive and essential to preserve referral flows and margins.

Dr. Lal PathLabs Limited Business Overview & Revenue Model

Company Description

Dr. Lal PathLabs Limited provides diagnostic and related healthcare tests and services in India and internationally. It operates laboratories for carrying the pathological investigations of various branches of bio-chemistry, hematology, histopathology, microbiology, electrophoresis, immuno-chemistry, immunology, virology, cytology, and other pathological and radiological investigations. The company also offers lab staff training; technical; and lab management services. As of March 31, 2022, the company had 277 clinical laboratories, including National Reference Lab at Delhi and Regional Reference Lab at Kolkata; and 4,731 patient service centers and 10,599 pick-up points. Dr. Lal PathLabs Limited was founded in 1949 and is based in Gurugram, India.

How the Company Makes Money

Dr. Lal PathLabs generates revenue primarily through the provision of diagnostic testing services to patients and healthcare institutions. The company earns money by charging fees for a wide array of laboratory tests and health check-up packages. Key revenue streams include individual test requests from patients, partnerships with hospitals and clinics that outsource their diagnostic needs, and corporate tie-ups for employee health check-ups. Additionally, LALPATHLAB benefits from its strong brand reputation and extensive network, which drives patient traffic and enhances customer loyalty. The company also explores opportunities in the telemedicine space and at-home sample collection services, which further contribute to its earnings.

Dr. Lal PathLabs Limited Financial Statement Overview

Summary

Dr. Lal PathLabs exhibits a strong financial position with significant revenue and profit growth, supported by efficient operational margins and a stable balance sheet. The company's cash flow performance underscores its ability to generate and manage cash effectively, ensuring financial flexibility.

Income Statement

Dr. Lal PathLabs showed strong financial performance with a consistent increase in total revenue over the years, marking a significant growth rate from 2024 to 2025. The company enjoys robust profit margins with a gross profit margin of approximately 60.8% and a net profit margin of about 19.8% in the latest year. Both EBIT and EBITDA margins indicate healthy operational efficiency, demonstrating the company's ability to convert revenue into profits effectively.

Balance Sheet

The company maintains a solid financial structure with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is strong, suggesting a high level of equity financing relative to assets. However, the return on equity shows room for improvement, reflecting moderate efficiency in generating returns for shareholders. The overall balance sheet displays stability and low-risk financial management.

Cash Flow

The cash flow statement reveals a positive trajectory in operating cash flow, aligning well with net income and showcasing strong cash-generating capabilities. Free cash flow has grown significantly, highlighting efficient capital expenditure management and prudent cash utilization. Despite some fluctuations in investing and financing cash flows, the company demonstrates an ability to maintain liquidity and support its growth strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.29B	24.61B	22.27B	20.17B	20.87B	15.81B
Gross Profit	14.67B	14.24B	12.79B	11.25B	11.68B	8.77B
EBITDA	6.91B	6.58B	5.67B	4.41B	5.19B	3.99B
Net Income	5.13B	4.87B	3.58B	2.39B	3.45B	2.92B
Balance Sheet
Total Assets	0.00	27.17B	24.56B	23.86B	23.53B	16.61B
Cash, Cash Equivalents and Short-Term Investments	11.64B	11.65B	9.43B	8.14B	6.82B	9.84B
Total Debt	0.00	1.57B	2.47B	4.20B	5.32B	1.50B
Total Liabilities	-22.06B	5.10B	5.71B	6.86B	8.10B	3.85B
Stockholders Equity	22.06B	21.73B	18.49B	16.66B	15.08B	12.45B
Cash Flow
Free Cash Flow	0.00	5.25B	4.84B	4.11B	-294.49M	3.39B
Operating Cash Flow	0.00	5.69B	5.35B	4.56B	4.47B	3.98B
Investing Cash Flow	0.00	-3.03B	-242.69M	-2.87B	-4.49B	-2.12B
Financing Cash Flow	0.00	-3.34B	-4.14B	-2.83B	1.36B	-1.39B

Dr. Lal PathLabs Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1472.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LALPATHLAB, the sentiment is Negative. The current price of 1472.95 is above the 20-day moving average (MA) of 1413.89, above the 50-day MA of 1449.73, and below the 200-day MA of 1497.88, indicating a bearish trend. The MACD of -16.49 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LALPATHLAB.

Dr. Lal PathLabs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIJAYA	75 Outperform	₹98.30B	63.55	―	0.20%	16.71%	13.92%
THYROCARE	69 Neutral	₹66.74B	49.06	―	0.68%	22.36%	52.00%
JLHL	67 Neutral	₹88.23B	44.94	―	0.14%	18.40%	7.30%
LALPATHLAB	66 Neutral	₹235.94B	44.07	―	0.89%	10.80%	32.79%
KRSNAA	62 Neutral	₹23.03B	26.94	―	0.38%	11.51%	21.56%
METROPOLIS	61 Neutral	₹97.21B	58.86	―	0.21%	15.41%	5.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Dr. Lal PathLabs Limited Corporate Events

Dr. Lal PathLabs Doubles Equity Capital with 1:1 Bonus Share Allotment

Dr. Lal PathLabs Limited has allotted 83,775,510 fully paid-up bonus equity shares of face value ₹10 each to its eligible shareholders in a 1:1 ratio, meaning one new share for every existing share held as of the record date of December 19, 2025. Following this bonus issue, the company’s paid-up equity share capital has doubled to ₹167.55 crore, divided into 16,75,51,020 fully paid-up equity shares, with the newly issued bonus shares ranking pari passu with the existing ones; the move broadens the company’s equity base and is likely aimed at enhancing liquidity and rewarding existing shareholders without altering their proportional ownership.

Dr. Lal PathLabs Announces 1:1 Bonus Share Issue

Dr. Lal PathLabs Limited has announced that it will issue bonus equity shares to its members in a 1:1 ratio, meaning one new share for every existing share held. The record date for determining eligibility for these bonus shares is set for December 19, 2025, with the allotment date scheduled for December 22, 2025. This move is likely to enhance shareholder value and reflects the company’s strong financial position and commitment to rewarding its stakeholders.

Dr. Lal PathLabs Announces Postal Ballot Results and New Employee Stock Plan

Dr. Lal PathLabs Limited has announced the results of a postal ballot, where shareholders approved several resolutions, including the implementation of the ‘Dr. Lal PathLabs Employee Restricted Stock Unit Plan 2025’ and the issuance of bonus equity shares. These resolutions are expected to enhance employee engagement and potentially improve the company’s market position by aligning employee incentives with company performance.

Dr. Lal PathLabs Increases Authorized Share Capital to INR 200 Crore

Dr. Lal PathLabs Limited has announced an amendment to its Memorandum of Association (MOA) following approval from its members via a postal ballot. The amendment involves an increase in the company’s authorized share capital from INR 107.96 crore to INR 200 crore, which is expected to enhance the company’s financial capacity and potentially support future growth initiatives.

Dr. Lal PathLabs Schedules Analyst and Investor Meeting

Dr. Lal PathLabs Limited has announced a scheduled meeting with analysts and institutional investors, set to take place at the JM Financial India Conference in Mumbai on November 19, 2025. This meeting is part of the company’s ongoing efforts to engage with stakeholders and provide insights into its operations, although no unpublished price-sensitive information will be disclosed.

Dr. Lal PathLabs Releases Financial Results for Q2 2025

Dr. Lal PathLabs Limited has announced the publication of its financial results for the quarter and half-year ending September 30, 2025. These results were published in the Financial Express and Jansatta newspapers on November 1, 2025, in compliance with SEBI regulations. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational health, potentially impacting investor confidence and market positioning.

Dr. Lal PathLabs Receives Tax Demand Notice for FY 2017-18

Dr. Lal PathLabs Limited has received an Assessment Order and Demand Notice from the Income Tax Department concerning the fiscal year 2017-18. The notice involves certain financial adjustments and a tax demand of INR 2,42,94,510. The company is currently reviewing the order and plans to take appropriate actions, including potentially filing an appeal. Despite the demand, the company states there is no material impact on its financials or operations.