Metropolis Healthcare Limited: Value Pick Stock July 2019, Update
Update:
Q2 FY 2019-20 Numbers
Metropolis Healthcare Limited, a complete chain of diagnostic companies with its central laboratory in Mumbai, Maharashtra has posted its Q2 FY 2019-20 numbers today. Read standalone details –
Revenue from operations stood at INR 172.28 crore in September 2019 up 16.61 percent Y-O-Y basis from INR 147.74 crore in September 2018. Q-O-Q revenues grew by 9.77 percent (INR 156.95 crore for June 2019)
Quarterly Net Profit at INR 31.68 crore in September 2019 up 72.87 percent Q-O-Q basis from INR 18.32 crore in June 2019. Y-O-Y profit up by 58.03 percent (INR 20.04 crore for September 2018)
Metropolis EPS has increased to Rs. 6.31 in September 2019 from Rs. 3.65 in June 2019.
Read: MEGHMANI ORGANICS Q2 Numbers
Total patient visit has increased from 4.23 Mn in H1FY19 to 4.92 Mn in H1FY20 registering a growth of 16.3 percent Y-O-Y
Number of tests performed has increased to 9.51 Mn in H1FY20 from 7.91 Mn in H1FY19 registering a growth of 20.3 percent Y-O-Y (consolidated)
Managing Director Said –
I am happy to present our quarterly and half yearly results.
We have been witnessing a consistent and stable growth in number of tests and patient visits. This is evident from the increase in revenue contribution from our retail business which reinforces patient trust and preference for Metropolis.
In our endeavor to offer tests that are critical for correct diagnosis, we have added 14 new specialized tests in the area of oncology, genetics and transplant pathology.
We are also pleased to welcome aboard Ms. Ishita Medhekar in the role of CHRO and Mr Rakesh Agarwal as CFO.
We will continue to be driven in our pursuit to deliver excellence in pathology while delivering value for all our stakeholders.
Metropolis is currently trading at INR 1399 on November 11, 2019 (NSE) and is trading above its 200 EMA (1107) and above its 50 EMA (1293)
Recommended Read: Finblab Value Pick Stock Polycab India Ltd
15 July, 2019
Metropolis Healthcare Limited is one of the leading diagnostics companies in India, by revenue, as of March 31, 2018 (Source: Frost & Sullivan)
Metropolis Healthcare Limited: History
Established in the year 1980, Mumbai based Metropolis Healthcare Limited is a chain of diagnostics companies.
The Company mainly focused on providing reliable test results as well as value-added services such as home collection of specimens and online access to test reports.
It also offers customized wellness packages to our institutional customers as per their requirement.
The Company conducts its operations through its laboratory and service network.
You may like: 9 Key Financial Ratios To Find Winning Stocks
Metropolis Healthcare: Business Activities
Metropolis Healthcare offers a comprehensive range of clinical laboratory tests and profiles, which are used for diagnostic screening, early detection, prediction, confirmation and/or monitoring of the disease.
Its tests are broadly classified into 3 categories –
Routine tests: such as blood chemistry analyses, blood cell counts and urine examination;
Semi-specialized tests: such as thyroid function tests, viral and bacterial cultures, histology, cytology, and infectious disease tests; and
Specialized tests: such as tests for coagulation studies, autoimmunity tests, cytogenetics, and molecular diagnostics.
Metropolis also offers analytical and support services to clinical research organizations for their clinical research projects.
Read this: 5 Lessons To Learn From Long Term Investors
Metropolis Healthcare: Company Reach
FY19 continued to be a year of aggressive network expansion for the company. Its laboratory network grew to 119 from 106 in FY2018. The collection centre network grew 40% from 1756 in FY18 to 2455 in FY19.
As of March 31, 2018, the company offered a broad range of approximately 3,480 clinical laboratory tests and 524 profiles.
The Company have implemented a hub and spoke model for quick and efficient delivery of services through its widespread laboratory and service network, which covers 173 cities in India, as of March 31, 2018.
Outside India, the company has laboratory operations in Ghana, Kenya, Zambia, Mauritius, and Sri Lanka. In addition, Metropolis has also entered into agreements with 3rd parties for collection and processing of specimens in Nepal, Nigeria, UAE, and Oman.
As of March 31, 2018, the company has an operational network of 17 clinical laboratories, 28 patient touch points, and 7 ARCs, outside India.
Also Read: 7 Silly Equity Investing Mistakes of Small Investor
Listed On
The shares of Metropolis Healthcare share are presently listed at Bombay Stock Exchange (BSE); CODE 542650 and National Stock Exchange (NSE) as Metropolis
Quarterly Numbers:
The company has reported its first ever financial results after its IPO. The net profit of the company stood at INR 123.6 Cr, a jump of 10.5% over the previous year. The revenues grew 18.1% Y-o-Y to INR 760 Cr on Y-o-Y basis.
The earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 26.2%.
The average realisation increased from INR 402 per test in FY18 to INR 447 per test in FY19, due to focus on more specialised tests.
Conclusion
Metropolis Healthcare Limited is one of India’s largest diagnostic chain companies.
The Management of the company is very confident in expanding the business. In an interview to Moneycontrol, Ameera Shah, Managing Director of Metropolis said the company will continue to be on fast pace expansion, and doubling market share in 5 focus cities (namely Mumbai, Pune, Chennai, Bengaluru and Surat – which constitute about 58.6% of revenues of the company) and eight seeding cities.
Promoters of the company are having a stake of more than 57 percent with 0% pledge shares. Along with that Aditya Birla Sun Life Mutual Fund is having 2.46% stake in the company.
Ace investor Radhakishan Damani through his firm Bright Star Investment Private Ltd and Smaller Cap World Fund Inc. holds 7 lakh shares and 6,86,545 shares respectively of Metropolis Healthcare.
On the technical front, the share price of Metropolis is trading well above its 50 and 200 EMA on the daily chart.
Keeping the above listed points in mind, Metropolis Healthcare Limited looks good at INR 1040. Finblab recommends investing in the stock in staggered manner for medium to long term. (One can accumulate on decline also)
If you like this article may be your friends too. Why not share it?
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
