Metropolis Healthcare Limited IPO: Review
Metropolis Healthcare Limited – one of the leading diagnostics companies in India, by revenue, as of March 31, 2018 (Source: Frost & Sullivan) is planning to raise INR 1,200.2 Cr to INR 1,204.29 Cr (all OFS) via initial public offer (IPO)
Metropolis Healthcare – Company Profile
Established in the year 1980, Mumbai based Metropolis Healthcare 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.
The Company conducts its operations through its laboratory and service network. As of March 31, 2018, Metropolis laboratory network consists of 106 clinical laboratories and its service network comprises 1,130 patient touch points (out of which 28 are located outside India)
It also offers customized wellness packages to our institutional customers as per their requirement.
Metropolis Healthcare Limited – 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.
As of March 31, 2018, the company offered a broad range of approximately 3,480 clinical laboratory tests and 524 profiles.
Metropolis also offers analytical and support services to clinical research organizations for their clinical research projects.
Metropolis Healthcare – Network
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.
Management Team
Metropolis has 4,585 full-time employees, including 183 pathologists and doctors and 2,022 scientific officers and phlebotomists located in India, and 222 full-time employees located outside India.
Promoters of Metropolis Healthcare
Dr. Sushil Kanubhai Shah,
Ameera Sushil Shah and
Metz Advisory LLP
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Metropolis Healthcare – Financials
Top-line
Metropolis posted steady revenue growth in the last three years. Revenue for FY 2016 stood at INR 490.60 Cr and the same was stood at INR 651.60 Cr for the period ended 31 March 2018
Bottom-line
Same as top-line, the company able to post steady growth in the bottom-line. Metropolis reported a Net Profit of INR 81.95 Cr for FY 2016 and the same was stood at INR 109.75 Cr for the period ended 31 March 2018
CONCLUSION –
Considering the company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Metropolis Healthcare Limited IPO
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