Author Topic: Metropolis Healthcare - Review + Recommendations  (Read 867 times)

0 Members and 1 Guest are viewing this topic.

resh

  • Sr. Member
  • ****
  • Posts: 292
Metropolis Healthcare - Review + Recommendations
« on: April 04, 2019, 08:16:26 PM »
Here are the various Analysts & Brokerage Reviews and Recommendations of the Metropolis Healthcare Limited

Advik Shetty of Aditya Birla Money says a Subscribe with the following Note,

We believe that due to its wellestablished brand, broad range of test offerings and economies of scale, Metropolis is well poised to increase its market share in the future. At the upper end of the price band, Metropolis is valued at a P/E of ~38x on TTM basis which is largely in line with the average of the other two listed players in the diagnostics space. We believe the company is well‐poised to deliver strong earnings growth in the forthcoming years considering the fragmented & under penetrated diagnostic market. We recommend investors to SUBSCRIBE the issue and hold the stock with a long term perspective.

Ayush Jain at IndSec Securities has the following recommendation,

Though the issue seems to be priced slightly on the higher side, we believe increased health awareness, rise in per capita income and better penetration of diagnostic service centers in tier-2 and tier-3 would drive growth. Further, the company plans to shift its focus from B2B (~57% of revenue) to B2C (~43% of revenue) in order to improve its realization and receivables position, albeit gradually. Metropolis is well placed to benefit from the changing demographic trends and increased awareness amongst individual. Hence we recommend a Subscribe rating to the issue from a long term perspective.

Milan Desai IIFL IPO Research Analyst told,

Metropolis business is more comparable to Dr. Lal Pathlabs than Thyrocare. Considering that Metropolis barely lags in or has similar operational parameters (like EBITDAM and asset turn) like Dr. Lal Pathlabs, it seeking similar valuations is justifiable. At Rs880/share (upper band), Metropolis is seeking ~39x/~26x its FY19 annualised/FY21E EPS against ~43x/~27x FY19 annualised/FY21E EPS for Dr. Lal Pathlabs. We recommend SUBSCRIBE to the Issue from a longer-term perspective.

Ventura Securities without naming any Analyst has a SUBSCRIBE recommendation. The brokerage house appears to be Sort of Poor in Equity Research as it is unwilling to invest in Quality Human Resource.

BP Equities Wealth Management IPO Research Team said,

The company is seeking to expand its presence in a large under-penetrated market which is dominated by smaller, unorganized players. Though the issue appears fully priced, asset light and debt free status makes this offer lucrative. Considering the superior band trust, strong growth potential in underpenetrated tier2 tier3 cities coupled with better margins, we give a “SUBSCRIBE” rating on this issue for the long term investors.

resh

  • Sr. Member
  • ****
  • Posts: 292
Re: Metropolis Healthcare - Review + Recommendations
« Reply #1 on: April 04, 2019, 08:31:04 PM »
Motilal Oswal Analysts Pooja Doshi and Arjun Goyal said,

Over FY16-18, Metropolis recorded Revenue/ PAT CAGR of 16.3%/ 15.7%. At the upper price band, Metropolis is valued at 37x P/E and 22x EV/EBITDA on 9MFY19 annualized basis, compared to Dr. Lal’s 42x P/E and 26x EV/EBITDA (FY19E). Despite rich valuations, leadership position in the niche diagnostic business along with healthy financials makes us positive on Metropolis from a long term perspective. SUBSCRIBE for Long Term.

T Ranvir Singh IPO Analyst at IDBI Capital said to SUBSCRIBE with the following note,

The offer price implies a P/E ratio of ~37x annualized earnings for FY19, which is ~16% discount to Dr lal Pathlabs but 22% premium to Thyrocare (Thyrocare’s 30x /Dr Lal Pathlab’s 44x FY19 EPS). We keep positive stance on the IPO.