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Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Dr. Lal PathLabs Limited's (NSE:LALPATHLAB) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
See our latest analysis for Dr. Lal PathLabs
How Well Did LALPATHLAB Perform?
LALPATHLAB's trailing twelve-month earnings (from 31 March 2019) of ₹2.0b has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which LALPATHLAB is growing has accelerated. What's enabled this growth? Let's take a look at if it is solely because of an industry uplift, or if Dr. Lal PathLabs has seen some company-specific growth.
In terms of returns from investment, Dr. Lal PathLabs has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 18% exceeds the IN Healthcare industry of 5.9%, indicating Dr. Lal PathLabs has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Dr. Lal PathLabs’s debt level, has declined over the past 3 years from 34% to 27%.
What does this mean?
Dr. Lal PathLabs's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Dr. Lal PathLabs gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Dr. Lal PathLabs to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for LALPATHLAB’s future growth? Take a look at our free research report of analyst consensus for LALPATHLAB’s outlook.
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Financial Health: Are LALPATHLAB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.