Diagnostics chains at inflexion point: Emkay
Emkay Global initiated coverage on diagnostic chains with buy ratings on Dr Lal PathLabs and Metropolis Healthcare while giving an 'add' rating on Vijaya Diagnostics.
«With competitive intensity reducing after the emergence of the new normal post-pandemic, we believe Indian organised diagnostics chains stand at the cusp of inflexion,» said the firm's analysts Anshul Agrawal and Eshan Bhargava in a client note."
«Additionally, tempered expectations following the significant run-up during the pandemic now present investors with an unassailable opportunity to participate in the burgeoning healthcare industry via organised diagnostics chains.»
The price targets set by Emkay imply a 20% upside for Dr Lal PathLabs and 24% for Metropolis.
«Diagnostics chains offer quick scalability and higher profitability, and are asset-light in nature, thereby commanding higher multiples versus larger peer hospitals,» said the analysts.
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