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The Curious Case Of Two Indian Diagnostics Stocks

The stock price of two listed players in the Indian diagnostics space—Dr Lal Pathlabs and Thyrocare—has displayed divergence.

A member of medical staff secures his face mask inside a operating theater at a hospital. (Photographer: Matthew Lloyd/Bloomberg)
A member of medical staff secures his face mask inside a operating theater at a hospital. (Photographer: Matthew Lloyd/Bloomberg)

The stock price divergence of the two listed players in the Indian diagnostics space—Thyrocare Technologies Ltd. and Dr Lal Pathlabs Ltd.—indicates ample inflows in the latter and outflows in the former.

On a year-to-date basis, Dr. Lal Pathlabs has gained over 22 percent while Thyrocare is down 10 percent.

While slowing growth seems to be investors’ primary concern with Thyrocare, multiple factors such as business model, management commentary, strategy and return ratios seem to be working well for Dr Lal Pathlabs.

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