Metropolis Healthcare Ltd. share price target

Quarterly Update Q2FY24

Network expansion to drive growth

Quarterly Update Q1FY24

Metropolis’ Q1FY24 revenue growth (-1%) and EBITDA margin (-180bps) were impacted by discontinuation of a PPP contract (Q1FY23 sales of INR 200mn) while the core business grew 12% YoY. Metropolis remains committed to expand its network by: 1) deepening its presence in existing cities and venturing into newer ones, 2) connecting directly with consumers to increase B2C share, 3) M&As to improvise scale and restore margins to pre-covid levels.

Network expansion to drive growth

Initiating Coverage Report

Network expansion to drive growth

Metropolis Healthcare’s (Metropolis) efforts to boost revenue growth through acquisitions and network expansion have taken a hit due to non-recurring covid- linked tests and PPP contracts.

Metropolis Healthcare’s (Metropolis) reported Q3FY23 performance was a mixed bag. Revenue declined 2.6% YoY (-5% QoQ) at Rs2.9bn (I-Sec: Rs2.8bn). Excluding Hi-Tech and government contract revenues, non-covid revenue grew ~13% YoY (+1,000bps from volume growth and +300bps from higher realisations).

Metropolis Healthcare’s (Metropolis) reported Q2FY23 performance was broadly in line with our estimates. Revenue remained flat YoY (+7.3% QoQ) at Rs3bn (I- Sec: Rs3.1bn) on a high base which had benefited from covid-related business.

Healthy performance in core business amid margin pressure

Metropolis Healthcare’s (Metropolis) reported Q1FY23 performance was broadly in line with our estimates.

Earnings miss estimates while margins dip

Missed estimates, margin contraction with lower realisations

Metropolis Healthcare is one of the largest diagnostic chains in western India.

Marginally miss estimates, healthy margin continue

Healthy expansion plan; major beneficiary of sector consolidation

Strong performance led by core business; Maintain BUY

Metropolis Healthcare (METROHL) reported yet another strong quarter on continued elevated margins and healthy growth in number of patients.

Metropolis Healthcare (METROHL) has acquired Dr. Ganesan's Hitech Diagnostic Centre (100% stake) for a consideration of INR618cr (combination of cash and stock deal).