Metropolis Q3 Results Review — Lower Volumes Impact Performance; Centrum Broking Maintains 'Add' On The Stock

Metropolis management reiterated its guidance revenue growth of 13-15% YoY which will largely be driven by volumes..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..Centrum Broking Report.Metropolis Healthcare Ltd. delivered a miss on our estimates in Q3 FY25. Overall sales grew 11% YoY to Rs 3.2 billion. Ebitda grew 11% YoY to Rs 720 million with margins remaining flat YoY to ~22%. PAT for the quarter was Rs 314 million (+16% YoY). Growth was driven by test volume growth of +11% YoY and a modest 2% YoY growth in revenue per test. Moreover, tier-III cities (26% of revenues) posted strong growth of 17% YoY on account of network expansion and continues to be a focus area of expansion. Additionally, Core diagnostics acquisition is expected to be completed by end-Feb’25. Going forward, management expects the Ebitda margins dilution on account of Core acquisition. It also plans for inorganic expansion, particularly in North India. Accordingly, we have reduced our earnings estimates for FY25E/26E/27E by 12% each to factor in lower profitability on account of higher expenses due to network expansion. We roll-forward to FY27E valuing Metropolis at PE of 39 times (versus 47 times earlier) at FY27E EPS to arrive at target price of Rs 1,970. Maintain Add..Click on the attachment to read the full report:.Asian Paints, Godrej Properties, Eris Lifesciences, Kajaria, KEC International Q3 Review - HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Metropolis Q3 Results Review — Lower Volumes Impact Performance; Centrum Broking Maintains 'Add' On The Stock

Going forward, management expects Metropolis' Ebitda margins dilution on account of Core acquisition, adds the brokerage.

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