It also expects its earnings before interest tax depreciation and amortisation (EBITDA) margin to improve by 100 to 150 bps from 25.2% in the first quarter.
Talking about its growth targets, the Mumbai-based lab chain said it intends to expand and own 1,000 of its own B2C stores by FY29. It also intends to expand beyond pathology into vitals, diet and consulting as well. The company expects its TruHealth vertical to contribute 25% of its revenue compared to 18% in preventive testing.
For its B2B segment, the company expects revenue from the speciality segment to rise towards 45% compared to 40%, with 17% growth seen in the June quarter. Inorganic additions are a strong path of a three-year growth plan, it said.
Brokerage firm Kotak Institutional Equities has an “add” rating and a target price of ₹655 per share on the stock, indicating an upside of 13.5% from its previous close. It said the company aims to expand its owned centre count and set up mini-hubs, which along with a deepening Tier-III presence will drive growth.
The brokerage said that backed by traction across B2C and B2B and an improving margin trajectory, it expects Metropolis Health to deliver a robust 26% earnings per share (EPS) compound annual growth rate (CAGR) over FY26-29.
In the first quarter of FY27, the diagnostics company reported a strong performance. The company’s consolidated net profit in the June quarter increased 25.8% to ₹57 crore from ₹45 crore in the previous year. Its revenue increased 16.6% to ₹450 crore from ₹386 crore a year earlier.
The company’s EBITDA was up 27% at ₹113 crore and its EBITDA margin expanded to 25.2% from 23.1% in the year-ago period.Out of the 23 brokerages that cover the stock, 19 of the analysts have a ‘Buy’ rating, with 2 giving ‘Hold’ and 2 giving ‘Sell’ ratings.
The company’s shares have surged over 3% intraday and have now cooled from the highs of the day.
The shares have made gains of close to 8% in the past year of trading. The current stock price of ₹589.90 is near its 52-week high mark of ₹609.05. The stock has closed in green in eight out of the past 10 sessions.
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