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The Nifty slipped to an intraday low of 24,526 on Monday, 2 June, but recovered later in the day. Overall sentiment remained subdued with no strong buying interest. The Nifty 50 ended the session 34.10 points lower, down 0.14%, at 24,716.60. The BSE Sensex also remained weak throughout the day and ended almost flat at 81,373. The Bank Nifty outperformed the broader indices.

Why it’s recommended: Diverse product portfolio across high-growth sectors, strong legacy, and indigenous innovation.

Key metrics: P/E: 17.02, 52-week high: ₹ 1,760.00, volume: ₹ 4.92 crore

Technical analysis: Trendline breakout

Risk factors: High dependency on agrochemical sector, raw material price volatility

Buy at: ₹ 1,218.80

Target price: ₹ 1,450 in three months

Stop loss: ₹ 1,110

Why it’s recommended: Strong focus on underserved markets, diversified loan book.

Key metrics: P/E: 24.51, 52-week high: ₹ 810, volume: ₹ 459.59 crore

Technical analysis: bullish flag pattern breakout

Risk factors: Geographical concentration risk, asset quality risks in MSME and vehicle finance

Buy at: ₹ 718

Target price: ₹ 790 in three months

Stop loss: ₹ 690

Current price: ₹ 2,777

Target price: ₹3,380 in 16-24 months

Stop-loss: ₹ ₹2,475

Why it’s recommended: Founded in 1949, Dr. Lal PathLabs is one of India’s leading diagnostic chains, offering a comprehensive range of pathology and radiology services. Its pan-India presence includes 12,365 pick-up points (PUPs), 6,607 patient service centers (PSCs), and 298 clinical laboratories as of FY25. The company serves patients and healthcare providers with over 3,100 pathology tests, 1,400+ radiology/cardiology tests, and 385 test panels, operating across more than 23 countries.

A logistics backbone supported by 280+ satellite labs and 36 NABL accreditations.

Partnerships with 150+ hospitals/labs.

A medical team of 250+ physicians and 1,800+ employees.

Revenue: ₹2,461 crore, up 10.5% YoY

Ebitda: ₹696 crore, up 14.2%, with 28.3% margin

PAT: ₹492 crore, up 35.9%, with a 20% net margin

The management is guiding for 11–12% revenue growth in FY26, driven by test portfolio expansion and rising patient volumes. Ebitda margins are expected to hover around 27%, as the company invests in growth regions (especially South and West India), digital infrastructure, and talent acquisition.

Continued focus on digital expansion, including an AI-based recommendation engine to improve patient experience.

Increasing depth in high-growth segments such as genomics, autoimmune disorders, and reproductive diagnostics.

Accelerated presence in Tier-3 and Tier-4 cities, particularly in North and East India; 18 new labs added in FY25.

Ongoing integration of Suburban Diagnostics (acquired in 2021) to broaden reach and service offerings.

Emphasis on volume-led growth by increasing both patient footfall and tests per patient.

Actively exploring inorganic growth opportunities through M&A, leveraging its strong brand recall.

Risk factors: The accuracy of diagnostic services is critical. Any lapses due to operational errors, poor maintenance, or mishandling could damage reputation and trust. The diagnostic space remains fragmented and highly competitive, with pricing pressure from numerous unorganized players offering similar services.

Current price: ₹ 260

Target price: ₹ 310 in 16-24 months

Stop-loss: ₹ 230

Why it’s recommended: Established in 1991, Mahindra Finance is among India’s leading non-banking financial companies (NBFCs), catering to a wide customer base across rural and semi-urban India. The company operates a robust pan-India network with over 1,365 branches across 27 states and 7 Union Territories, covering 516,000 villages and 8,000 towns, and serving 11 million customers through 6,000+ dealers and 10 OEM partnerships. 

Its diverse portfolio spans vehicle loans, SME financing, home finance, insurance broking, mutual funds, personal loans, and fixed deposits, with an AUM of $14.1 billion.

Total disbursements: ₹60,741 crore, up from ₹58,647 crore in FY24

Profit after tax: ₹2,261 crore, up 16% YoY

Total income: ₹18,530 crore, up 16% YoY

Loan book: ₹1,16,214 crore, up 17% YoY

Interest income: ₹16,566 crore, up 15% YoY

Interest expenses: ₹8,415 crore, up 21% YoY

The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.

The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.

Mahindra Finance has focused on targeting resilient borrowers, digitizing processes via third-party API integrations, and using data analytics to drive collection efficiencies. The company’s SME segment saw a 48% jump in disbursements, accounting for 5% of the total. Among vehicles:

Passenger cars rose 8%, making up 41% of disbursements

Tractor loans grew 3%, contributing 10%

Pre-owned and three-wheeler financing accounted for 16% and 4%, respectively

Commercial vehicle financing remained stable at 21%

Other segments (farm implements, gensets, personal/consumer loans) grew 21%, contributing 2%

Mahindra Finance’s diversified portfolio and strong brand in rural markets position it well to benefit from increased rural spending and the uptick in auto and SME financing.

Risk factors: Credit risk remains a concern, particularly in rural markets, where loan delinquencies could lead to higher NPAs and impact profitability. The company’s dependence on multiple funding sources exposes it to liquidity risks, especially during times of financial market stress. Continued performance depends on effective risk management, prudent capital allocation, and strong administrative controls.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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