The January-March quarter (fourth quarter, or Q4) results of largest listed players in the diagnostic space do not portray a healthy picture. Competitive pressures, weak organic growth, integration challenges, and higher costs injured the operational performance of companies in the sector.
In light of the above, brokerages have slashed their earnings estimates for the three large listed players – Dr Lal PathLabs, Metropolis Healthcare, and Thyrocare Technologies – by 15-20 per cent.
If Q4 results of 2021-22 are any indication, growth is going to be a near-term challenge for the sector.
The country’s largest listed player - Dr Lal PathLabs - reported a