Dr. Lal Pathlab

Hello everyone,

I have this feeling looking at the visits I make and queue of patients for medical test, that this must be a really good business.

Then, I checked Dr. Lal's financials it seems to have good ROE and also, debt is very little. Also, upon checking the charts I realised that it has almost reached its lowest level. Now the question is why has it come down from 1200 levels to now trading at 760, if, this business is good?

Also, a question arises, we can look at investing into this at these levels? My gut feeling is yes, why because of two reasons:
1. I have recently (in 1 year or so I have seen how they are mushrooming all around my vicinity, I had just 1 lab 2 years back within 2-4 kms now have 3. Each time lab has gone bigger and better.

2. Penetration into smaller cities has seen up trend.

3. Financials look good

Now, I request you guy to give your comments and opinions on this stock.

 

Dr.Lal Path lab is in a very competitive field of medicine.In the process of making money Lal Path Labs franchises are mushrooming.

 

Shabbir bhai, I started investing in equity last year almost at this point of time (September).

First month was good if you see it was kind of uptrend and then the markets started turning bearish and by December everyone knows what happened, in these three months I lost over 50k and then decided to start doing some serious research and first thing I found and subscribed to was DIY & subscribed DSIJ. Then I gave a myself some break from trading / investing but started reading alot like your blogs and views of many of the members.
This actually gave me a perspective to look at things differently when you analyse a business.
However, I am still very novice and very weak to understand financials but trying to learn.

Thanks to you for bringing people together and sharing knowledge.

 

Awesome analysis

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Posted my observation almost a year back it was trading at 760 then now over 1000. Though I haven't invested in it till date. I think sometimes listening to your simple observation really works.

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So true

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