Steady heartbeat of growth in diagnostics stock keeps sector pulsing

Realisation growth for Dr Lal PathLabs and Vijaya Diagnostic Centre is projected to remain flat compared to the previous year

The stocks of diagnostic service providers have been standout performers within the healthcare sector over the past year, posting returns between 16 and 80 per cent. In comparison, the Nifty 50 saw returns of 8 per cent. Stable pricing, expectations of gradual volume growth, and market share expansion for the larger players have stoked increased optimism for listed companies.

 

Some of the expected operational gains could materialise in the October-December or January-March quarters of 2024-25 (FY25). The three largest listed players — Dr Lal PathLabs, Metropolis Healthcare, and Vijaya Diagnostic Centre — are expected to report a 14 per cent