Hi,
I have been analyzing Diagnostic sector after recent market correction, since valuations of few stocks look reasonable as compared to 2021.
I believe that, ROE could be lower for most of the diagnostic stocks going forward, but it may not drop to a large extent. In last 2 decades, we have seen various viruses emerging right from years 2001 to 2022, and some of these viruses may remain or new variants may emerge after few years. In general, people are becoming more cautious and now-a-days, Doctors also recommend more medical tests probably than they used to recommend 10-15 years back. Growing health awareness trend may also support the growth of this sector for multiple years.
Having said this, Valuations of Dr. Lal PathLabs is higher as compared to others, so in-depth comparison with other companies could certainly help.
Disc : Under watch list.
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