1:1 Bonus Issue + 70% Dividend Ahead: BUY Dr Lal PathLabs Stock Before Double Treats? Target Price Rs 3,699

Dr Lal Pathlabs stock is in focus for its upcoming bonus and dividend rewards. JM Financial has suggested buy for target price of Rs 3,699. Here's what analysts said:

DLPL reported healthy results for 2QFY26, with revenue/EBITDA/PAT growing +11%+/11%/+17% YoY, respectively. Revenue and PAT were in-line, while EBITDA was higher than estimates. However, margins remained flat YoY. Despite 2Q usually being a strong seasonal quarter, it was weak this year, and, the growth was supported by 5% YoY growth each in patient volumes and test volumes. Margins sustained due to 2% improvement in Swasthfit contribution YoY which is now at 26%, and a better case mix. The company continues to grow organically without any price hikes for last 2.5 years and is expected to remain doing so to the tune of ~11-12% YoY. This growth is primarily supported by network expansion in the core metro markets and deeper penetration in Tier 3 and Tier 4 towns with the addition of 15-20 labs each year since FY24. The company might consider price hike post Feb-26 once internal growth targets are achieved. It would then support a stronger growth in higher teens. We project a 11-12% organic top-line growth over FY26-28, and revise our margin estimates upwards for FY27/FY28 to 29%/29.5% respectively, backed by improving Swasthfit mix and integration of Suburban. Attractive valuations at -1SD, steady growth (11-12%) and margin improvement warrant an upgrade to BUY. We value DLPL at 48x PE target multiple and roll forward to Sep'27 TP of INR 3,699 (18% upside).