Dr. Lal PathLabs shares become rocket
Dr Lal PathLabs: It often happens in the stock market that if the results are weaker than expected, the shares get beaten heavily. But Monday, May 4, brought a completely different and profitable story for the investors of Dr. Lal Path Labs. As soon as the market opened after Maharashtra Day and weekend holidays, this stock made investors rich. A huge jump of about 20 percent was seen in the share price and it hit the upper circuit by reaching the level of Rs 1641.70 on BSE. The surprising thing is that the company's quarterly profit has declined, yet the stock is running like a rocket. From an investor's point of view, it is important to understand what is the real reason behind this stormy rise.
Profit decreased but revenue showed strength
The company had announced its financial results for the January-March 2026 quarter on April 30. If we look at the business figures, the consolidated revenue from operations has increased by 16.6 percent to Rs 702.7 crore. In the same period exactly a year ago, it was Rs 602.6 crore. Despite this impressive growth in revenue, the company's net profit has registered a decline of 15.2 percent. This profit has declined to Rs 131.3 crore, which was Rs 154.8 crore in the March quarter last year.
Along with the decline in profits, pressure on the company's margins is also clearly visible. The company's margin slipped from 28 percent to 26.6 percent in the March 2026 quarter. At the same time, EBITDA increased by 11 percent to Rs 186.8 crore. Talking about the entire financial year 2025-26, the company has earned a net profit of Rs 504.8 crore and a revenue of Rs 2762.9 crore. Despite declining profits, the market has given a thumbs-up to the company's top-line growth (revenue).
The company gave the gift of dividend
The reason behind this bumper rise in the stock is not only the revenue figures but also some major strategic decisions of the company. The board of the company has gifted a final dividend of Rs 4 per share to the shareholders for the financial year 2026. The record date of dividend for this share with face value of Rs 10 has been fixed as June 26. The money will be transferred to the investors' accounts within 30 days of getting the approval of the shareholders in the general meeting to be held on July 25.
Apart from this, a big news has also come out on the front of business expansion. Dr. Lal Path Labs has completed the acquisition of 100 percent stake in Shahbazkar Diagnostic Center Private Limited (SDCPL). With this, SDCPL has now become a company completely owned by Dr. Lal Path Labs. At the same time, while strengthening its presence in the international market, the company has started a new subsidiary in Dubai.
What do market experts say?
After this 20 percent increase on Monday, the market cap of Dr. Lal Path Labs has crossed Rs 26,200 crore. By the end of March 2026, promoters held 53.21 percent stake in the company. The leading brokerage houses of the market also seem quite bullish about this healthcare stock.
Emkay Global has given 'buy' rating to this stock and set a target price of Rs 1740. At the same time, Nomura has also maintained its buying advice and increased its target from Rs 1,800 to Rs 1,860. JM Financial has also given 'Buy' rating on this stock, however, it has marginally adjusted its target price from Rs 2,075 to Rs 2,072. Overall, large investors and brokerage firms have full confidence in the long-term growth story of Dr. Lal Path Labs.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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