Metropolis Healthcare Ltd
Metropolis Healthcare Ltd
HealthcareMetropolis Healthcare Limited is one of the leading Indian diagnostics companies. The Company owns a chain of diagnostic centres across India, South Asia, Africa and the Middle East.
Metropolis Healthcare shows strong TTM profit growth of 40% and favorable analyst sentiment with 78% buy ratings, but the stock trades at an expensive 58.7x PE and 7.41x book value with historically modest sales growth of 11% over 5 years. The risk-reward at current valuations warrants a hold until earnings growth consistency is better established.
Key Fundamentals
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Key Insights
Weaknesses
3- Stock is trading at 7.58 times its book value
- The company has delivered a poor sales growth of 10.5% over past five years.
- Company has a low return on equity of 12.6% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
Metropolis Healthcare shows strong TTM profit growth of 40% and favorable analyst sentiment with 78% buy ratings, but the stock trades at an expensive 58.7x PE and 7.41x book value with historically modest sales growth of 11% over 5 years. The risk-reward at current valuations warrants a hold until earnings growth consistency is better established.
- TTM compounded profit growth of 40% indicates strong near-term earnings acceleration
- 78% of analysts (14 out of 18) rate the stock a buy, reflecting broad institutional confidence
- TTM revenue growth of 24% shows meaningful top-line momentum in recent quarters
- 10-year compounded sales CAGR of 13% demonstrates a durable long-term growth franchise
- 1-year stock CAGR of 27% reflects positive price momentum and improving market sentiment
- 10-year ROE of 19% highlights historically strong capital efficiency in the diagnostics business
- Dividend yield of 0.93% provides some income support, uncommon in high-growth healthcare names
- Market cap of Rs 11,314 crore positions Metropolis as a mid-large cap with institutional liquidity
- PE ratio of 58.7x is significantly elevated, pricing in years of forward growth with little margin of safety
- Price-to-book of 7.41x is extremely expensive, flagged as a known concern by screeners
- 5-year compounded profit CAGR of just 1% shows earnings stagnated over the medium term before recent recovery
- 5-year stock CAGR of -5% means long-term shareholders have actually lost capital over half a decade
- 3-year ROE of only 13% (and last year 14%) is below the 10-year average of 19%, suggesting structural dilution of returns
- 5-year sales growth of only 10.5-11% is modest for a stock commanding a 58.7x multiple
- Only 11% sell ratings but 11% hold ratings suggest not all analysts are convinced at current levels
- Low return on equity of 12.6% over 3 years as flagged in known cons indicates capital is not being deployed efficiently relative to valuation premium
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- No new promoter share encumbrance Jun 23
Metropolis Healthcare promoters confirmed no new encumbrance on shares in FY26. Metz Advisory LLP holds 12 lakh encumbered shares, unchanged.
- Multiple investor meetings scheduled May 27
Company scheduled analyst meetings with Macquarie (Jun 8), Morgan Stanley India (Jun 3), and Choice Broking (Jun 11) in 2026, with no unpublished price sensitive information to be shared.
TL;DR: Recent news flow for Metropolis Healthcare is entirely routine and administrative, with no material positive or negative catalysts. Promoter encumbrance remains stable at 12 lakh shares with no new pledges in FY26. Active investor engagement with major brokerages signals continued institutional interest but no directional change. The near-term outlook is neutral pending operational or financial updates.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 283 | 277 | 308 | 291 | 331 | 313 | 350 | 323 | 345 | 386 | 429 | 406 | 425 |
| Expenses | 212 | 214 | 234 | 226 | 251 | 235 | 260 | 251 | 283 | 296 | 321 | 311 | 317 |
| Operating Profit | 70 | 63 | 75 | 65 | 80 | 79 | 90 | 72 | 62 | 90 | 108 | 95 | 108 |
| OPM % | 25% | 23% | 24% | 22% | 24% | 25% | 26% | 22% | 18% | 23% | 25% | 23% | 25% |
| Other Income | 1 | 3 | 1 | 2 | 3 | 2 | 3 | 3 | 7 | 8 | 1 | 0 | 8 |
| Interest | 6 | 6 | 6 | 5 | 6 | 5 | 5 | 5 | 5 | 5 | 6 | 6 | 8 |
| Depreciation | 23 | 21 | 22 | 25 | 26 | 26 | 27 | 28 | 29 | 31 | 32 | 32 | 39 |
| PBT | 42 | 39 | 48 | 37 | 51 | 51 | 61 | 42 | 36 | 61 | 71 | 57 | 70 |
| Tax % | 20% | 26% | 26% | 26% | 28% | 25% | 24% | 26% | 19% | 26% | 26% | 26% | 27% |
| Net Profit | 33 | 29 | 36 | 27 | 37 | 38 | 47 | 31 | 29 | 45 | 53 | 42 | 51 |
| EPS in Rs | 1.63 | 1.41 | 1.73 | 1.33 | 1.78 | 1.85 | 2.27 | 1.53 | 1.41 | 2.17 | 2.54 | 2 | 2.46 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 456 | 475 | 545 | 647 | 761 | 856 | 998 | 1,228 | 1,148 | 1,208 | 1,331 | 1,646 |
| Expenses | 339 | 359 | 405 | 467 | 559 | 619 | 708 | 880 | 855 | 920 | 1,023 | 1,245 |
| Operating Profit | 117 | 116 | 140 | 181 | 203 | 237 | 290 | 348 | 293 | 288 | 308 | 401 |
| OPM % | 26% | 24% | 26% | 28% | 27% | 28% | 29% | 28% | 26% | 24% | 23% | 24% |
| Other Income | 7 | 29 | 39 | 6 | 8 | -17 | 12 | 34 | 15 | 9 | 15 | 17 |
| Interest | 2 | 2 | 2 | 4 | 4 | 13 | 12 | 25 | 32 | 28 | 24 | 25 |
| Depreciation | 21 | 17 | 17 | 19 | 20 | 39 | 46 | 63 | 89 | 94 | 109 | 134 |
| PBT | 101 | 128 | 160 | 164 | 187 | 169 | 244 | 293 | 188 | 175 | 191 | 259 |
| Tax % | 33% | 36% | 33% | 32% | 34% | 24% | 25% | 27% | 24% | 26% | 24% | 26% |
| Net Profit | 68 | 82 | 107 | 112 | 124 | 128 | 183 | 215 | 143 | 128 | 146 | 191 |
| EPS in Rs | 15.44 | 20.1 | 26.61 | 27.29 | 5.99 | 6.29 | 8.95 | 10.46 | 6.98 | 6.24 | 7 | 9.17 |
| Div. Payout % | 0% | 100% | 49% | 0% | 55% | 32% | 22% | 19% | 29% | 16% | 0% | 55% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 41 |
| Reserves | 352 | 269 | 314 | 405 | 408 | 513 | 696 | 876 | 978 | 1,086 | 1,321 | 1,472 |
| Borrowings | 14 | 5 | 1 | 1 | 18 | 67 | 112 | 379 | 266 | 197 | 204 | 232 |
| Other Liabilities | 87 | 107 | 188 | 110 | 113 | 160 | 181 | 256 | 240 | 254 | 324 | 393 |
| Total Liabilities | 462 | 391 | 512 | 526 | 550 | 750 | 1,000 | 1,521 | 1,495 | 1,547 | 1,859 | 2,138 |
| Fixed Assets | 153 | 142 | 202 | 207 | 213 | 296 | 343 | 1,059 | 1,121 | 1,177 | 1,447 | 1,601 |
| CWIP | 0 | 1 | 1 | 0 | 6 | 3 | 0 | 6 | 20 | 0 | 0 | 0 |
| Investments | 168 | 101 | 142 | 102 | 33 | 14 | 10 | 16 | 15 | 55 | 71 | 142 |
| Other Assets | 141 | 147 | 167 | 216 | 298 | 437 | 647 | 440 | 340 | 316 | 341 | 395 |
| Total Assets | 462 | 391 | 512 | 526 | 550 | 750 | 1,000 | 1,521 | 1,495 | 1,547 | 1,859 | 2,138 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 69 | 91 | 102 | 104 | 90 | 215 | 249 | 253 | 247 | 264 | 263 | 351 |
| Investing | -56 | 96 | -86 | 1 | 36 | -104 | 63 | -736 | 48 | -89 | -199 | -223 |
| Financing | -9 | -174 | -17 | -87 | -118 | -55 | -33 | 163 | -292 | -181 | -87 | -115 |
| Net Cash Flow | 4 | 14 | -1 | 18 | 8 | 56 | 279 | -321 | 3 | -6 | -23 | 12 |
| Free Cash Flow | 46 | 79 | 45 | 90 | 67 | 179 | 221 | 223 | 195 | 200 | 196 | 300 |
| CFO/OP | 87 | 113 | 109 | 89 | 78 | 118 | 106 | 96 | 102 | 105 | 99 | 99 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 57 | 54 | 54 | 57 | 66 | 55 | 45 | 40 | 39 | 38 | 41 | 38 |
| Inventory Days | 52 | 46 | 38 | 53 | 55 | 44 | 59 | 68 | 64 | 58 | 65 | 51 |
| Days Payable | 92 | 96 | 97 | 88 | 90 | 152 | 160 | 136 | 136 | 150 | 171 | 146 |
| Cash Conversion Cycle | 17 | 3 | -5 | 21 | 30 | -54 | -56 | -29 | -33 | -53 | -65 | -57 |
| Working Capital Days | 32 | 8 | -27 | 28 | 33 | 2 | -9 | -26 | -22 | -16 | -18 | 16 |
| ROCE % | 28% | 34% | 46% | 43% | 43% | 40% | 36% | 29% | 17% | 16% | 15% | 18% |
Documents
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Company Information
Metropolis Healthcare Limited is one of the leading Indian diagnostics companies. The Company owns a chain of diagnostic centres across India, South Asia, Africa and the Middle East.