Healthcare · METROHL
Diagnostics
from 576 today
We attended the investor and analyst meet of Metropolis Healthcare (MHL) and came back enthused by the profitable growth prospects presented by the company, maintaining a BUY rating with an unchanged target price of Rs675.
Metropolis Healthcare's management set forth its three-year business growth targets, focusing on network expansion, scaling up bundle testing under TruHealth, specialized tests, and productivity improvements. Management maintains its guidance of 14-15% revenue growth and 100-150bps of margin improvement for FY27, with margins expected to reach 27-28% in the next three years.
Revenue grew 17% YoY to INR 4.5bn, driven by higher patient volumes and stronger specialty diagnostics, while EBITDA grew 26% YoY to INR 1.13bn.
Metropolis’ Q1FY27 was broadly in-line with our expectation, with revenue growing at 16.6% led by an uptick in patient volumes and improvement in test mix. We raise FY28E EPS by ~1%, factoring in better margins, and retain BUY with a DCF-based TP of INR 675.
Metropolis Healthcare reported broadly in-line 1QFY27 performance, with revenue growing 17% YoY to INR 4.5bn. We maintain our FY27E/28E EPS, roll forward our valuation and value METROHL at 39x 1HFY29E EPS, arriving at a revised TP of INR 630 with a Hold recommendation.
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