Citi turns bullish on India's Dr Lal PathLabs, upgrades to buy

Dr. Lal PathLabs

19/03/2026 09:16

** Citi Research upgrades Dr Lal PathLabs DLPA.NS to “buy” from “sell”, raises PT to 1,650 rupees from 1,450 rupees

** Brokerage says India’s diagnostics sector moved past COVID-era price wars to more rational competition

** Says diagnostics firm has maintained pricing discipline with no broad hikes despite competition from standalone labs/hospitals

** Expects co to deliver ~10–12% organic revenue growth during FY26-28, driven by core market gains, tier-3/4 cities expansion, richer mix of specialty offerings

** Says margins should remain strong at 28–29%, supported by operating leverage, cost control, supply chain efficiencies

** Robust, debt-free balance sheet supports growth, acquisitions; recent stock correction makes valuations attractive - Citi

** Stock last down 1.8% to 1321 rupees in broader weak market; down 10.9% YTD

(Reporting by Aleef Jahan in Bengaluru)

((aleefjahan.cs@thomsonreuters.com))