Diagnostic companies look expensive on valuations, said Anmol Ganjoo of JM Financial Institutional Securities on Wednesday, while adding that 15 percent lower is a good entry point for these companies.

Speaking in an interview with CNBC-TV18, Ganjoo said, “The COVID period did highlight the resilience of certain business models like Dr Lal Pathlabs, Metropolis Healthcare, Thyrocare Technologies exhibited. The mix for them, at least till last quarters, had considerably moved towards COVID. So we hope next year this revenue stream will subdue.”

According to him, there are no concerns on the operational performance of these companies.

On the stocks front, Ganjoo said, “We like Metropolis, Dr Lal Pathlabs and Aster DM Healthcare. We like Aster because valuation argument is most favourable there.”

Watch the video for more

(Edited by : Ajay Vaishnav)