Dr. Lal PathLabs Limited’s (NSE:LALPATHLAB) Share Price Could Signal Some Risk
When close to half the companies in India have price-to-earnings ratios (or “P/E’s”) below 33x, you may consider Dr. Lal PathLabs Limited (NSE:LALPATHLAB) as a stock to avoid entirely with its 76.3x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
With earnings growth that’s superior to most other companies of late, Dr. Lal PathLabs has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing shareholders might be a little nervous about the viability of the share price.
View our latest analysis for Dr. Lal PathLabs
