Dr Lal Pathlabs outperformed its peers even as markets plummeted; Analyst Simi Bhaumik recommends a Buy for this target price
While the stock markets plummeted on Monday, the Nifty Pharma index did better than most of its peers. Though it ended in the red, the fall was just under 0.3 per cent from the previous closing price. In contrast, Nifty fell by over 3.5 per cent while the Bank Nifty was down by over 5 per cent at close.
In the broader market too, the Pharma stocks did better than most stocks across the sectors. One stock that stood out today was Dr Lal PathLabs – a mid cap stocks which hit a new lifetime high of Rs 3,339.30 on the intraday basis. The stock jumped nearly 5 per cent to end at Rs 3309.
In the last three trading sessions, the stock has risen by over 12 per cent from the level of Rs 2,987.25 it attained on April 7, 2021. It has gained by over 135 per cent from its 52-week low of Rs 1,445.50 per share on April 22, 2020.
While Dr Lal Pathlabs stock traded flat for most of the day, it raced away in the last 90 minutes.
On BSE Healthcare Index, the stock was the second-best performer after Panacea Biotec, which also hit a 52-week high today to end up by over 11 per cent at the day’s closing.
The company which provides diagnostic healthcare services in India has seen its net profits jump by 74.7 per cent to Rs 95.90 crore on a 38 per cent rise in net sales to Rs 452.40 crore. This is on a consolidated basis in Q3 of December 2020 as compared to the corresponding quarter of the previous year.
Market analyst Simi Bhaumik believes that the pharma stocks will continue to do good forward and Dr Lal PathLabs was a stock to put a bet on. She said that the fundamentals of this company are strong. It can be held for longer-term with continuous and timely investment, she adds.
Bhaumik recommends Dr Reddy’s for short term as the stock soars today around 5 per cent. She sets a target of Rs 5200-5300 apiece in the next two-three weeks.
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