⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LALPATHLAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | LALPATHLAB | Market Cap | 23,541 Cr. | Current Price | 1,407 ₹ | High / Low | 1,771 ₹ |
| Stock P/E | 43.9 | Book Value | 140 ₹ | Dividend Yield | 0.85 % | ROCE | 30.6 % |
| ROE | 24.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,449 ₹ | DMA 200 | 1,486 ₹ |
| Chg in FII Hold | -1.57 % | Chg in DII Hold | 0.98 % | PAT Qtr | 113 Cr. | PAT Prev Qtr | 146 Cr. |
| RSI | 46.3 | MACD | -11.8 | Volume | 3,10,901 | Avg Vol 1Wk | 2,57,998 |
| Low price | 1,147 ₹ | High price | 1,771 ₹ | PEG Ratio | 3.32 | Debt to equity | 0.06 |
| 52w Index | 41.7 % | Qtr Profit Var | 7.24 % | EPS | 30.8 ₹ | Industry PE | 35.0 |
📊 Dr. Lal PathLabs (LALPATHLAB) shows strong fundamentals with high efficiency ratios but faces premium valuation and weak technical momentum. It is a moderately good candidate for swing trading with cautious positioning near support levels.
✅ Optimal Entry Price: 1,380–1,400 ₹ (near support zone below 50 DMA)
🚪 Exit Strategy if Holding: Consider exiting near 1,470–1,500 ₹ (short-term resistance zone around 200 DMA) or if RSI moves above 55.
Positive
- 💡 Strong ROCE (30.6%) and ROE (24.7%) indicate efficient capital usage.
- 📈 EPS of 30.8 ₹ supports earnings strength.
- 🏦 Low debt-to-equity ratio (0.06) ensures financial stability.
- 📊 Dividend yield of 0.85% adds investor confidence.
- 📈 Large market cap of 23,541 Cr. ensures liquidity and stability.
Limitation
- ⚠️ High P/E (43.9) compared to industry average (35.0), suggesting overvaluation.
- 📉 RSI at 46.3 and MACD (-11.8) indicate weak momentum.
- 🔻 PAT declined from 146 Cr. to 113 Cr., showing earnings pressure.
- 📊 PEG ratio (3.32) suggests expensive valuation relative to growth.
Company Negative News
- 📉 Decline in FII holdings (-1.57%) shows reduced foreign investor confidence.
- 📊 Sequential PAT drop highlights short-term earnings weakness.
Company Positive News
- 📈 Increase in DII holdings (+0.98%) reflects strong domestic institutional support.
- 📊 Quarterly profit variation (+7.24%) shows improvement compared to prior year.
Industry
- 🏭 Industry P/E at 35.0 is lower than Lal PathLabs’ 43.9, highlighting premium valuation.
- 📈 Diagnostics and healthcare sector remains resilient, supported by rising demand for preventive and specialized testing.
Conclusion
🔎 Lal PathLabs is fundamentally strong but technically weak in the short term. Swing traders may enter near 1,380–1,400 ₹ and exit near 1,470–1,500 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.