Healthcare Stock Declared Rs 8/Share Dividend, ICICI Securities Sees 43% Upside, Suggests Buy

Metropolis Healthcare Ltd, a healthcare sector midcap stock, has been rated "Buy" by ICICI Securities with a target price of Rs 1,933/share. The brokerage claims 43% potential upside from its current level. The stock has recently, on 10 February 2023, declared an Interim Dividend for FY23. The stock is set to trade ex-dividend this week. Check below to know more:

Rs 8/share Interim Dividend

According to the regulatory filing by the company on February 10, 2023, "Approved and Declared payment of an Interim Dividend at the rate of Rs. 8/- (Rupees Eight Only) per Equity Share on the Face Value of Rs. 2/- (Rupees Two Only) per Equity Share for the Financial Year 2022-23. The Board has fixed Thursday. February 23, 2023, as the "Record Date" for the purpose of ascertaining eligibility of the shareholders for payment of Interim Dividend. The Interim Dividend will be paid to the shareholders within 30 days of declaration."

 

Stock Performance & Outlook

The share price of Metropolis Healthcare last traded at Rs 1,359.40 apiece on NSE, up 0.85% as compared to its previous close. The stock's 52 week low is Rs 1,190.40 apiece and 52 week high is Rs 2,570.60 apiece, respectively. Its market valuation is Rs 6,960.98 crore.

The stock has given 3.57% in the past 1 week, and 3.79% in the past 1 month, respectively. However, it has fallen 32.05% in one the past 1 year and 25.62% in the past 3 years, respectively. It was listed on 15 April 2019 on exchange. Since its date of listing it has gained 41.63%.

 

ICICI Securities recommends Buy Stock For a Target Price of Rs 1,933/share

According to the brokerage, Metropolis Healthcare's (Metropolis) reported Q3FY23 performance was a mixed bag. Revenue declined 2.6% YoY (-5% QoQ) at Rs2.9bn (I-Sec: Rs2.8bn). Excluding Hi-Tech and government contract revenues, non-covid revenue grew ~13% YoY (+1,000bps from volume growth and +300bps from higher realisations). EBITDA margin contracted 160bps QoQ to 24.7%, driven by negative operational leverage (I-Sec: 26%). "We remain positive on the company owing to its aggressive network expansion with focus on B2C, strengthening position in the fast-growing south region with focus on increasing digital revenue and faster shift of the market to organised players. Maintain BUY with a revised target price of Rs1,933/share (earlier: Rs1,926/share)," the brokerage has said.

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.