26% of FII-Backed Healthcare Stock Declares Rs 6/Share Dividend; Record Date On June 10: Buy?

The financial results of Dr. Lal PathLabs for the quarter and year that ended on March 31, 2024, have been released. Based in New Delhi, Dr Lal PathLabs Limited is an Indian company offering diagnostic and related health care services. The healthcare company which has a higher FIIs stake of 26% also announced a 60% dividend, following which the stock rose 5.38% on Friday to close at Rs 2348.85 per share.

Dr. Lal PathLabs Dividend

The Board of Directors approved the "Recommendation of final dividend of INR 6/- per equity share (@ 60% on a face value of INR 10/- each) for the financial year ended March 31, 2024 subject to approval of the Shareholders at ensuing Annual General Meeting ("AGM") of the Company. The record date for the purpose of payment of final dividend shall be June 10, 2024," said Dr. Lal PathLabs in a regulatory filing.

Dr. Lal PathLabs Financials

On a consolidated basis, the company reported revenue from operations of Rs 545 Cr in the quarter ended 31st March 2024 up by 11.1% from Rs 491 Cr in the same quarter of FY23 whereas for the entire fiscal year FY24 its revenue stood at Rs 2227 Cr up by 10.4% from Rs 2017 Cr in FY23.

The company's EBITDA reached Rs 145 Cr in the quarter under review up by 25.1% YoY from Rs 116 Cr in the same quarter of the previous fiscal, whereas EBITDA reached Rs 609 Cr in FY24 up by 24.4% from Rs 490 Cr in the entire year FY23.

Dr. Lal PathLabs said its consolidated net profit reached Rs 86 Cr in Q4FY24 up by 50.8% YoY from Rs 57 Cr in Q4FY23 whereas net profit stood at Rs 362 Cr in FY24 up by 50.3% YoY from Rs 241 Cr in FY23.

Mr. Shankha Banerjee, Chief Executive Officer-Designate said, "We are thrilled to have concluded the year on a strong note, achieving 10.4% growth in Revenue and 50.3% growth in PAT . In FY24, we provided services to 27.6 million patients and tested a total of 78.2 million samples, representing a growth of 8.1% in samples over previous year."

"We're expanding our reach in core markets by strengthening our presence in Tier 3 and Tier 4 towns. Simultaneously, we're intensifying efforts in key clusters of Western and Southern India. We continue to leverage our digital infrastructure, including advanced AI and data analytics, to enhance patient experience and deliver operational excellence. We have taken a lead in bundling routine tests under 'Swasthfit' and have been successful thus far. We will continue to expand its reach and develop programs for sustain growth trajectory," Shankha Banerjee further added.

Dr. Lal PathLabs Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said, on a daily chart, the stock has been experiencing a prolonged period of sideways movement, indicating a lack of clear direction in the short term.
Additionally, the stock has encountered significant resistance at its 100-day moving average, suggesting a bearish sentiment prevailing in the market.

Furthermore, the daily RSI has been oscillating within the range of 40 to 60 for an extended period, reflecting a lack of strong momentum in either direction.

Considering these technical observations, we anticipate the stock to continue its sideways movement within the range of 2200 to 2400 until a breakout occurs on either side.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.