BSE:539524

Stock Analysis Report

Executive Summary

Dr. Lal PathLabs Limited provides diagnostic and related healthcare tests and services in India and internationally.

Rewards

Earnings are forecast to grow 18.8% per year

Earnings have grown 14.7% per year over the past 5 years

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Dr. Lal PathLabs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539524 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

539524

0.9%

IN Healthcare

-1.5%

IN Market


1 Year Return

58.5%

539524

32.1%

IN Healthcare

10.7%

IN Market

Return vs Industry: 539524 exceeded the Indian Healthcare industry which returned 31.6% over the past year.

Return vs Market: 539524 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

539524IndustryMarket
7 Day-0.6%0.9%-1.5%
30 Day-2.3%5.3%-2.7%
90 Day2.3%13.9%1.3%
1 Year59.6%58.5%32.9%32.1%12.7%10.7%
3 Year67.7%64.9%10.5%9.1%22.0%15.1%
5 Yearn/a20.2%18.2%34.5%22.0%

Price Volatility Vs. Market

How volatile is Dr. Lal PathLabs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dr. Lal PathLabs undervalued compared to its fair value and its price relative to the market?

55.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539524 (₹1629.95) is trading above our estimate of fair value (₹814.93)

Significantly Below Fair Value: 539524 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539524 is poor value based on its PE Ratio (55.8x) compared to the Healthcare industry average (22.6x).

PE vs Market: 539524 is poor value based on its PE Ratio (55.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 539524 is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 539524 is overvalued based on its PB Ratio (12.7x) compared to the IN Healthcare industry average (2.2x).


Next Steps

Future Growth

How is Dr. Lal PathLabs forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539524's forecast earnings growth (18.8% per year) is above the savings rate (6.5%).

Earnings vs Market: 539524's earnings (18.8% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 539524's earnings are forecast to grow, but not significantly.

Revenue vs Market: 539524's revenue (13.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 539524's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539524's Return on Equity is forecast to be high in 3 years time (24.9%)


Next Steps

Past Performance

How has Dr. Lal PathLabs performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539524 has a high level of non-cash earnings.

Growing Profit Margin: 539524's current net profit margins (18.1%) are higher than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: 539524's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: 539524's earnings growth over the past year (25.1%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: 539524 earnings growth over the past year (25.1%) underperformed the Healthcare industry 26%.


Return on Equity

High ROE: 539524's Return on Equity (22.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dr. Lal PathLabs's financial position?


Financial Position Analysis

Short Term Liabilities: 539524's short term assets (₹9.0B) exceed its short term liabilities (₹2.5B).

Long Term Liabilities: 539524's short term assets (₹9.0B) exceed its long term liabilities (₹351.0M).


Debt to Equity History and Analysis

Debt Level: 539524 is debt free.

Reducing Debt: 539524 has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: 539524 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 539524 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 539524 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 539524's debt is covered by short term assets.


Next Steps

Dividend

What is Dr. Lal PathLabs's current dividend yield, its reliability and sustainability?

0.58%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: 539524's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 539524's dividend (0.58%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 539524 has been paying a dividend for less than 10 years.

Growing Dividend: 539524's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.5%), 539524's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 539524's dividends in 3 years are forecast to be well covered by earnings (22.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Om Manchanda (54yo)

11.8yrs

Tenure

₹36,990,104

Compensation

Dr. Om Prakash Manchanda, also known as Om, has been the Chief Executive Officer of Dr. Lal PathLabs Pvt. Ltd. since April 01, 2008 and has been its Whole Time Director since February 01, 2011. He has a di ...


CEO Compensation Analysis

Compensation vs Market: Om's total compensation ($USD518.41K) is about average for companies of similar size in the Indian market ($USD637.08K).

Compensation vs Earnings: Om's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arvind Lal
Chairman & MD0yrs₹23.13m34.82% 47.6b
Om Manchanda
CEO & Whole Time Director11.8yrs₹36.99m1.79% 2.4b
C. A. Ved Goel
Chief Financial Officer1.5yrs₹4.32m0.023% 31.6m
Rajat Kalra
Legal Head0yrs₹2.99mno data
Vandana Lal
Whole-Time Director25yrs₹18.55m20.26% 27.7b
Munender Soperna
Chief Information Officer5.7yrsno data0.0074% 10.1m
Manoj Garg
Chief Human Resources Officer5.3yrsno data0.011% 14.8m
Shankha Banerjee
Chief Growth Officer5.5yrsno data0.019% 26.1m
Bharath Uppiliappan
CEO of India Business0.4yrsno data0.011% 15.6m

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: 539524's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arvind Lal
Chairman & MD0yrs₹23.13m34.82% 47.6b
Om Manchanda
CEO & Whole Time Director11.8yrs₹36.99m1.79% 2.4b
Vandana Lal
Whole-Time Director25yrs₹18.55m20.26% 27.7b
Saurabh Srivastava
Independent Non-Executive Director4.5yrs₹2.10mno data
Anoop Singh
Independent Non-Executive Director4.5yrs₹1.47mno data
Sunil Varma
Lead Independent Director0.8yrs₹1.70mno data
Rahul Sharma
Non Executive Director14.6yrs₹1.06m0.0025% 3.4m
Harneet Chandhoke
Independent Non-Executive Director4.5yrs₹1.45mno data
Somya Satsangi
Independents Director1yrs₹228.08kno data
Archana Erdmann
Non-Executive Director0.8yrsno data2.42% 3.3b

4.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 539524's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 539524 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dr. Lal PathLabs Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dr. Lal PathLabs Limited
  • Ticker: 539524
  • Exchange: BSE
  • Founded: 1949
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: ₹136.773b
  • Shares outstanding: 82.34m
  • Website: https://www.lalpathlabs.com

Number of Employees


Location

  • Dr. Lal PathLabs Limited
  • Tower B, SAS Tower
  • 12th Floor
  • Gurugram
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LALPATHLABNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2015
539524BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2015

Biography

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, immunochemistry, immunology, virology, cytology, and other pathological and radiological investigations. The company offers a range of diagnostic and related healthcare tests and services for use in core testing and patient diagnosis, as well as in the prevention, monitoring, and treatment of disease and other health conditions. Its customers include individual patients, hospitals, other healthcare providers, and corporate customers. As of March 31, 2019, the company had 200 clinical laboratories, including National Reference Lab at Delhi and Regional Reference Lab at Kolkata; and 2,569 patient service centers and 6,426 pick-up points. Dr. Lal PathLabs Limited was founded in 1949 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:12
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.