Dr Lal PathLabs Ltd’s share price went up by 0.68 per cent after the company reported a 43.6 per cent increase in profit for the quarter ended June 30, 2023 at ₹83.66 crore compared to ₹58.2 crore during the corresponding quarter last year.

The company’s revenues were up 7.76 per cent to ₹541 crore compared to ₹502 crore last year. Sequentially, the company’s profits were higher by 46.9 per cent compared to ₹56.9 crore in the previous quarter.

“EBITDA rose 24.4 per cent YoY to ₹146 crore, and EBITDA margin improved 360 bps YoY to 27 per cent, attributable to a better test mix and price hike. Profit after tax rose 43.6 per cent YoY to ₹84 crore,” Geojit said in a report. 

Intense competition in Delhi NCR could limit earnings growth in the coming quarters. For instance, Netmeds is planning to announce deep price reductions in Delhi NCR to strengthen its presence.

The stock price rose 19.4% since our last update, it added.

“Hence, we have downgraded the stock to sell with a revised target price of ₹2,110 based on 47x FY25E adjusted earnings per share (EPS),” it said.

The shares went up by 0.68 per cent to ₹2,384 at 10.22 am on BSE.