Buy This Healthcare Stock For 18% Return, In 1 Year: Sharekhan Recommends

Renowned brokerage firm Sharekhan has recommended investors to 'Buy' stocks of Metropolis Healthcare with a potential upside of 18%, in 1 year.

Target Price

The Current Market Price (CMP) of Metropolis Healthcare is Rs. 3070. The brokerage firm has estimated a Target Price for the stock at Rs. 3622.6. Hence the stock is expected to give an 18% return, in a Target Period of 12 months.

Stock Outlook
Current Market Price (CMP)	Rs. 3070
Target Price	Rs. 3622.6
1 year return	18.00%

Company performance

Metropolis reports a muted performance for Q2FY22 and earnings marginally missed estimates. The revenues at Rs. 303 crore increased by 5% YoY, while PAT at Rs. 58.4 crore dropped by YoY 3.5%. The Non-Covid revenues of the company have increased strongly by 38% YoY to Rs. 260 crore. The total no of tests done during the quarter was up 29% YoY to 0.62 crore. The penetration of B2C in the focus cities has increased to 60% from 58% as of FY21, and Metropolis aims to take this to 65%.

Comments by Sharekhan

Sharekhan thinks that although Metropolis Healthcare had a Muted Q2; but the company is carving a strong growth path. The brokerage firm comments, "The management's relentless focus on the business-to-consumer (B2C) segment, backed by its wide portfolio of tests, expanding laboratory and patient service center network." The brokerage firm remained the buy status on the stock.

About the company

Metropolis Healthcare (Metropolis), a leading diagnostics player in India, also has a presence in other countries of South Asia, Africa, and the Middle East. Metropolis offers a comprehensive range of 4,000+ clinical laboratory tests. As of FY2021, the company has a total of 125 laboratories including 13 reference labs and 112 other laboratories. Apart from this, the company has around 2555 patient service centers.

Disclaimer

The above stock has been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

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