Dr. Lal PathLabs Limited
Dr. Lal PathLabs Limited Fundamental Analysis
Dr. Lal PathLabs Limited (LALPATHLAB.NS) shows moderate financial fundamentals with a PE ratio of 42.02, profit margin of 19.84%, and ROE of 24.01%. The company generates $26.6B in annual revenue with strong year-over-year growth of 10.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LALPATHLAB.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLALPATHLAB.NS demonstrates superior asset utilization.
Valuation Score
ModerateLALPATHLAB.NS shows balanced valuation metrics.
Growth Score
ExcellentLALPATHLAB.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLALPATHLAB.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentLALPATHLAB.NS achieves industry-leading margins.
Key Financial Metrics
Is LALPATHLAB.NS Expensive or Cheap?
P/E Ratio
LALPATHLAB.NS trades at 42.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LALPATHLAB.NS's PEG of -35.43 indicates potential undervaluation.
Price to Book
The market values Dr. Lal PathLabs Limited at 9.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.15 times EBITDA. This signals the market has high growth expectations.
How Well Does LALPATHLAB.NS Make Money?
Net Profit Margin
For every $100 in sales, Dr. Lal PathLabs Limited keeps $19.84 as profit after all expenses.
Operating Margin
Core operations generate 23.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.01 in profit for every $100 of shareholder equity.
ROA
Dr. Lal PathLabs Limited generates $17.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dr. Lal PathLabs Limited produces operating cash flow of $3.24B, showing steady but balanced cash generation.
Free Cash Flow
Dr. Lal PathLabs Limited produces free cash flow of $1.89B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.35 in free cash annually.
FCF Yield
LALPATHLAB.NS converts 0.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How LALPATHLAB.NS Stacks Against Its Sector Peers
| Metric | LALPATHLAB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.02 | 28.45 | Worse (Expensive) |
| ROE | 24.01% | 763.00% | Weak |
| Net Margin | 19.84% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 3.51 | 2795.60 | Strong Liquidity |
| ROA | 17.85% | -16588.00% (disorted) | Strong |
LALPATHLAB.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dr. Lal PathLabs Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.10%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
113.37%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
98.29%
Industry Style: Defensive, Growth, Innovation
High Growth