Sales recovery, expansion in new markets key to Dr Lal Pathlabs' growth

Higher competition, expansion may be a challenge for margin

The Dr Lal Pathlabs stock has gained 13 per cent on expectations that de-risking of the revenue profile, lower Covid-related contribution, and volume gains will improve its sales and margins.

Sales of the company which had been impacted during the first half of FY21 have started recovering. Non-Covid test and walk-in volumes, which were down 38 per cent YoY in the June quarter, came back on the growth track in the December quarter and report­ed an 8 per cent YoY increase. Though walk-in volumes are lower than the pre-pandemic period, they have recovered from the lows of last year.

While