Metropolis Healthcare shares hit 52-week high—here is what's keeping investors keen

Metropolis Healthcare share price today, Metropolis Healthcare Q4 update: Shares of Metropolis Healthcare on Friday, April 12 clocked a fresh 52-week high on D-Street after the diagnostics firm's core business revenue grew approximately 1 per cent year-on-year (YoY) for Q4FY24 and the firm became debt-free as of March 31, 2024. 

The Metropolis Healthcare stock rose as much as 7.5 to clock a 52-week high of Rs 1,935 on BSE in opening deals, surpassing the previous peak of Rs 1,828.70, hit on February 19, 2024. On Wednesday, post market hours the company released its updates for its fourth and final quarter of the financial year 2023-24.

Here are the key highlights of the Q4FY24 (YoY basis)

-Core Revenue growth was driven by volume growth of approximately 8 per cent and RPP growth at 7 per cent YoY for Q4FY24. RPP's growth was largely driven by growth in the specialty tests segment, premium wellness segment, and price increases.

-Business-to-consumer (B2C) revenues grew at 18 per cent YoY for Q4FY24.

-During the current quarter, the company has repaid debt, resulting in a debt-free status as of 31st March 2024

"EBITDA margins for Q4FY24 show a consistent upward trend both quarter-over-quarter and year-over-year. This boost in margin can be attributed mainly to the surge in volumes and implemented price increase," the company said in a regulatory filing said.

The company also said in its filing that competition in the industry has shown signs of easing over the last 6 to 12 months, especially as new players prioritise profitability over aggressive discounting. However, competition persists in certain metropolitan areas, particularly within the B2B segment. Despite this competitive environment, the company has enhanced its market share in its core geographies and is successfully expanding its presence in newer territories with aggressive lab and network expansion strategy.

"Investments made in expanding the network, acquiring talent, upgrading information technology, and refining processes are proving fruitful, as shown by the rise in sales volumes across both the B2C and B2B sectors," the company's filing added.

Metropolis Healthcare share price target

"On technical setup, the weekly chart patterns are suggesting stock to maintain its bullish outlook for the target of Rs 2,000 in near term, said Ravi Singh, SVP-Retail Research, Religare Broking.

How shares of Metropolis Healthcare have performed of late?

The stock has risen over 15 per cent in the last month and 25 per cent in the last six months. The stock has gained over 45 per cent in the last one year outperforming benchmark Nifty 50 which has gained over 27 per cent. 

What does Metropolis Healthcare do?

Metropolis Healthcare is a diagnostics company with a chain of diagnostic centres across the country, South Asia, Africa, and the Middle East. Metropolis Healthcare offers a comprehensive range of clinical laboratory tests and profiles. These tests and profiles are used for prediction, early detection, diagnostic screening, confirmation and/or monitoring of the disease.

For all other news related to business, politics, tech and auto, visit Zeebiz.com.