Gradual sales recovery for Dr Lal PathLabs

December quarter could come under pressure, but growth set to improve from March quarter

Dr Lal PathLabs stock has gained about nine per cent over the past fortnight, on brokerage recommendations and on buying after share fall due to demonetisation-related demand worries. While the company had a strong September quarter on high seasonal demand and a jump in volumes, the second half of this financial year is expected to be muted, given gradual recovery in sales volumes.

Analysts had cut their FY17 earnings estimates by 15 per cent due to sluggish second half. In fact, for the December quarter, the company is expected to post a sequential decline of 14 per cent in revenues