Amazon's entry into healthcare a headwind but diagnostic stocks attractive

The differential between the common tests offered by incumbents and new entrants is just about 5-10 per cent which isn't going to move the needle much in this business

The news that Amazon India has launched diagnostic services in select metro cities in partnership with the unlisted Orange Health Labs has led to a look at the competitive intensity in healthcare services.

 

Listed companies in the space such as Dr Lal Path Labs, Metropolis Health, Thyrocare, Vijaya, and Krsnaa have all seen double-digit stock price corrections over the last 6-9 months.

 

Orange Health Labs was founded in 2020 and raised $12 million in December 2024. It has an estimated annual revenue run rate of ₹100 crore and promises doorstep sample collection within 60 minutes and, for routine tests, digital