PATHLABS: LIFE BEYOND COVID

Diagnostic chains reported bumper revenues and valuation during Covid-19 waves. Can they deal with the ebb to retain investor interest?

- JOE C. MATHEW

HYDERABAD-BASED Vijaya Diagnostics Centre Ltd. made a muted debut on stock exchanges in September 2021. This was unusual as Indian stocks were on a road to recovery after the Covid-19 crash the previous year and diagnostic business was perceived to be thriving due to rise in testing for Covid-19 and related complications. Within a month, the stock went up from the upper end of the initial public offer price of ₹531 per share to ₹672.5, only to touch a low of ₹374.65 on February 24, 2022. On April 1, it was at ₹442.60. Vijaya is not alone. In fact, shares of all listed diagnostic laboratory service providers have been on a roller-coaster ride. Dr. Lal Pathlabs' 52-week low as on April 1 was 56% below its high of ₹