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Metropolis Share Price Gains On ICICI Securities 'Buy' Callβ€” Check Target Price

The brokerage believes the recent and future M&A could, provide a meaningful upside to Metropolis' growth, particularly in expanding reach in existing geographies, enhancement of new technology and test menu and potential foray into unexplored regions across India.

Metropolis Share Price Gains On ICICI Securities 'Buy' Call— Check Target Price
ICICI Securities has maintained 'Buy' rating on Metropolis
(Photo: NDTV Profit/ AI generated image)
STOCKS IN THIS STORY
Metropolis Healthcare Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

ICICI Securities expects Metropolis Healthcare Ltd. to register an earnings CAGR of 29% over FY26–28E with revenue CAGR at ~15%.

Revenue growth is likely to stem from volume growth (9–10%) while test mix and realisation improvement may fetch the balance 5% YoY growth.

The brokerage expects Ebitda margin to expand ~230bps YoY over FY26–28E. ICICI Securities sees RoE and RoCE of 19.4% and 16.6%, respectively, in FY28E.

ALSO READ: Oil India Share Price Target Raised by ICICI Securities; Stock Remains Top Pick β€” Here's Why

The stock currently trades at valuations of 45.6x FY27E and 36.5x FY28E earnings and EV/Ebitda multiple of 23.9x FY27E and 19.5x FY28E.

ICICI securities has maintained its Buy with an unchanged DCF-based target price of Rs 675.

Key downside risks: Higher-than-expected competition; and regulatory hurdles.

Click on the attachment to read the full report:

Isec Metropolis.pdf
VIEW DOCUMENT

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