New Delhi, Oct. 12 -- Domestic brokerage firm Axis Securities, in its latest report, highlighted that the domestic diagnostics sector offers a compelling multi-year investment opportunity, citing a combination of structural demand visibility, scalable business models, strong cash generation, and improving returns.

The brokerage believes the sector is entering a secular upcycle, with improving utilization, stronger cash conversion, and disciplined expansion creating an attractive combination of growth and quality.

Within this theme, Axis Securities initiated coverage of Dr Lal PathLabs, Vijaya Diagnostic Centre, and Nephrocare Health Services with BUY recommendations, citing potential upside of 20%, 20%, and 21%, respectively.

"We stron...