No rerating yet for diagnostic players despite price hikes as margins fall

While discounts have come down, pricing gap still large between incumbents and new players

After December quarter results, which were a mixed bag, and muted near term outlook of listed diagnostics players, brokerages have cut their estimates for FY24. They expect volumes and realisations to be under pressure given weakness in Covid-adjusted test volumes and higher competitive pressures.

In a post Q3 results note on Dr Lal, Bhavesh Gandhi of YES Securities pointed out that there has been a lack of volume revival in recent quarters with an increasing likelihood that FY24 too, would be a work-in-progress year for the company’s initiatives to bear fruit. They have reduced volume growth to mid-single digits next