Dr Lal Pathlabs, Metropolis shares gain on Kotak Equities' rating upgrades, target price raise
₹2,360. Given reasonable prices, the brokerage has also increased Metropolis Healthcare's fair value to ₹1,600, keeping its Reduce rating. Following the brokerage's upgrade, Dr Lal Pathlabs share price surged over 5% on Tuesday's session, while Metropolis Healthcare share price rose 2.5%.
Also Read: Multibagger stock: Rategain Travel shares gain for third straight day, up 140% in a year Over the course of the last year, the brokerage believes that price sanity in diagnostics has increased. The brokerage's most recent price study, which included seven locations, points to continued improvements in pricing patterns. A more benign competitive environment allays any serious worries about the structural volume growth and margins of Dr Lal Pathlabs and Metropolis Healthcare, even if the pricing gap between listed heavyweights and online players remains high at 2.0–2.6X.
As compared to its listed peers, the brokerage said that Dr Lal Pathlabs' recent correction—which has dropped by almost 15% in the last month—has been especially severe due to the departure of its CEO. Shankha Banerjee's recent hiring as CEO adds consistency, and the brokerage thinks Dr. Lal Pathlabs has a capable leadership team in place led by MD Dr.
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