A new all time high shows bullish sentiment is here to stay in these stocks.
Thyrocare Technologies, Metropolis Healthcare and Dr. Lal PathLabs, hitting their respective record highs, were up 9 per cent to 17 per cent on the BSE in intra-day trade.
All indicators point to a gradual rise in Aurobindo Pharma's stock from the 100 EMA support
The 29 per cent fall in volumes in the quarter was responsible for revenues declining 21 per cent year-on-year
Valuations too do not leave much scope for gains
Diagnostic services provider Dr Lal PathLabs on Friday reported a 51.94 per cent decline in its consolidated net profit at Rs 28.4 crore for the quarter ended June 30, 2020.
Metropolis Healthcare, meanwhile, rallied 7% to Rs 1,579 today, and were trading higher for the eighth straight day
Firm will be scaling up its capacity up to 2,000-2,500 tests a day as per ICMR norms by next week
That apart, national laboratories have also been allowed to carry out clinical testing of Covid-19, as the number of cases went past 400 in India.
Awards announced for nine other categories; Adi Godrej gets Lifetime achievement award
Expansion, raising share of B2C network to help improve margins
Metropolis, Dr Lal and Thyrocare are likely to see more gains led by expansion, increasing penetration, preventive testing and government's Ayushman Bharat scheme
Firm banking on acquisitions, and rationalisation of prices
Dr Lal PathLabs' board has approved the signing a binding term sheet for the acquisition
Operating margin declined to 28.5 per cent as against 29 per cent a year ago
The stock surged 16% to Rs 931, also its 52-week high on the BSE in intra-day trade after the company reported a better than expected 27% YoY growth in net profit at Rs 402 million in Q4FY18.
Better margins and focus on cost rationalisation to drive earnings
The stock of Dr Lal Pathlabs fell 6.4 per cent after brokerages cut their margins and earnings estimates sharply for the company due to rising pressures on pricing and volumes. Morgan Stanley, which has cut its target price to Rs 700 from Rs 888, believes that the company will face substantial pressure on both pricing and volumes given competitive intensity. Some of the pressures were visible in the March quarter performance, which saw the company's operating profit margins decline 298 basis points year-on-year to 23.6 per cent.Competition in the business-to-business (B2B) segment, promotional and employee expenses as well as costs associated with setting up new labs, added to the pressure. The B2B segment, which includes revenues from nursing homes and hospitals among others, accounts for 40 per cent of the company's revenues. Going ahead, analysts at Nomura believe that the company's operating profit margins could be under pressure and could contract 100 to 200 basis points given ...
The stock slipped 6.5% to Rs 780 after two per cent of total equity changed hands on NSE and BSE.
Dr Lal PathLabs is focusing on 'inorganic growth'