healthcare

Dr. Lal Pathlabs

LALPATHLAB · Nifty 50

1,651.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionhealthcare sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score100/100 (STRONG). 1 positive flags, 1 concerns.
Historical Context40 similar technical setups. Average outcome: -8.5% decline. 0% positive.

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Dr. Lal Pathlabs scores 100/100 on fundamentals (strong). Dr. Lal Pathlabs: BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 17.4% broken into three drivers. Each shows how efficiently the company generates returns.

ROE17.4%=
19.6%Net Margin
×
0.7xTurnover
×
1.3xLeverage

ROE of 17.38% is moderate margin-driven and stable. Net margin of 19.6% × asset turnover of 0.71x × leverage of 1.3x.

What This Means

Net margin of 19.6% means the company keeps ₹19.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.71x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

66.8%

Operating

24.6%

Net

19.6%

declining

Gross margin 66.8% → operating margin 24.6% → net margin 19.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.5x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 28.1x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 26.7% — strong cash generation. Business is self-funding.

Peer Comparison

Dr. Lal Pathlabs is compared against 5 peers in the healthcare sector.

Key Watchpoints

🟢

Breaks above ₹1734 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1569 (-5%)

Further downside risk

🟢

Healthcare sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
✅ High Earnings Quality: Cash flow covers earnings 1.5x — strong cash conversion

Risk Flags

⚠️ 1 Warning1 Positive2 total flags
⚠️Price/Sales: 10.0x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

➡️ 2 flags — 1 positive, 1 warning. Mixed profile.

Data Quality

95/100All ratios self-computed from verified sources. Multi-year data.

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
50.5UNAVAILABLE
P/B Ratio
10.7HIGH
Market Cap
₹2674149.1L CrHIGH
From 52W High
93% of high
Sector Peers
5
Dr. Lal Pathlabs Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight