"With competitive intensity reducing after the emergence of the new normal post-pandemic, we believe Indian organised diagnostics chains stand at the cusp of inflexion," said the firm's analysts Anshul Agrawal and Eshan Bhargava in a client note."
By ET Bureau | Updated:
Agencies
"Diagnostics chains offer quick scalability and higher profitability, and are asset-light in nature, thereby commanding higher multiples versus larger peer hospitals," said the analysts.
"With competitive intensity reducing after the emergence of the new normal post-pandemic, we believe Indian organised diagnostics chains stand at the cusp of inflexion," said the firm's analysts Anshul Agrawal and Eshan Bhargava in a client note."
"Additionally, tempered expectations following the significant run-up during the pandemic now present investors with an unassailable opportunity to participate in the burgeoning healthcare industry via organised diagnostics chains."
The price targets set by Emkay imply a 20% upside for Dr Lal PathLabs and 24% for Metropolis.
"Diagnostics chains offer quick scalability and higher profitability, and are asset-light in nature, thereby commanding higher multiples versus larger peer hospitals," said the analysts.
Diagnostic chains plan to scale up as Covid cases surge
