Currently, about 2/3rd of Dr Lal’s revenues comes from North. The Eastern and Western regions contribute 15% each, whereas South contributed only 6% of Rs 2,227 cr revenues in FY24.
In October 2021, it had acquired Suburban Diagnostics to expand into West. It was it’s first large sized acquisition. Now after more than 2 years, it claims to have stabilised that acquisition and now ready for the next – and hence the intention to expand in South.
- The Company is looking at assets with Rs 300-400 cr revenues. It has formed an M&A team to evaluate potential acquisition opportunities in the market.
- Potential deal size could be as large as Rs 3,000 – 4,000 cr.
- Company has surplus cash of around Rs 1,000 cr and adequate headroom to leverage the acquisition.
Company claims that the opportunities are available but coming at high valuations.
It continues to explore the right fit.