Metropolis Healthcare shares slump after I-T raids; expert says more downside likely

Metropolis Share Price NSE: Shares of Metropolis Healthcare Ltd, NSE: METROPOLIS, slumped more than 5 per cent amid reports of an IT raid. According to Zee Business news channel, the raid has been conducted by the investigation department of Income Tax in Mumbai. Soon after the news came out, the scrip of the diagnostic service provider slumped 5.11 per cent, or Rs 79.50. It was trading at Rs 1,477 at around 10:26 am. In the last trading session, the scrip had closed at Rs 1,556.50.

According to market expert Sumeet Bagadia, share are under selling pressure for the past few days. 

"The structure of Metropolis looks weak. There can be a fall of up to Rs 100 or Rs 150 from here. It is better to avoid long position," Sumeet added.

The company had recently reported a consolidated profit after tax of Rs 40.5 crore for the second quarter ended September 30. It reported a profit after tax of Rs 58.4 crore in the year-ago period. However, its revenue from operations fell marginally to Rs 300.3 crore during the period under review from Rs 302.6 crore a year ago.

As a result, the counter has given a negative return of 9.62 per cent in the last five days. So far this year, it has yielded a negative return of 57.33 per cent. The data shows similar figures when talking about the performance of the scrip in the last one year. 

In a statement, Metropolis Healthcare said its wellness revenue during the quarter increased by 40 per cent year-on-year to Rs 33 crore. Specialised tests contributed 40 per cent to the non-Covid revenue during Q2, it added.

The 52-week range of the scrip is Rs 3,579 and Rs 1,318. The share hits an all-time high of Rs 2,994.70 on June 7, 2021 and an all-time low of Rs 907 on May 13, 2019.

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