LIC buys stake in this healthcare firm, stock surges over 2%

Country's largest insurer Life Insurance Corporation (LIC) of India has bought stake in diagnostics and healthcare tests chain Dr Lal PathLabs in the quarter ended December 2021. Buoyed by the development, shares of Dr Lal PathLabs surged 2.59% to Rs 3,768 against the previous close for Rs 3,673 on BSE.

The large cap share trades higher than the 20 day, 50 day and 200 day moving averages but lower than 5 day and 100 day moving averages.

Total 7,563 shares of the firm changed hands amounting to a turnover of Rs 2.82 crore on BSE.

Market cap of the firm rose to Rs 31,187 crore.

LIC bought 1.12% stake or 9,31,246 equity shares in the diagnostic services firm during the third quarter Q3, shareholding data show.

The insurer did not hold any stake in the firm in the previous quarter of July-September 2021 period.

Mutual funds (MFs) have raised their stake in the firm to 3.34% or 27,82,681 shares at the end of December quarter against 3.26% or 27,17,883 shares during the second quarter.

The company reported a 10.6% rise in its net profit at  Rs 96 crore for the second quarter ended September 2021 compared to Rs 87.1 crore in the year-ago period. Revenue rose 15.4% to  Rs 498.4 crore during the quarter compared with  Rs 431.9 crore in Q2FY21.

Dr. Lal PathLabs Limited is an international service provider of diagnostic and related healthcare tests. Based in Delhi, the company offers a broad range of tests on blood, urine and other human body viscera.