Nuvama Retains Buy On Healthcare Sector Midcap Stock, Likely To Give 35% Robust Return

Nuvama, a leading broking firm, retained a Buy on healthcare firm Metropolis Healthcare Ltd. with a target price of Rs. 1,670/share. The brokerage sees a 35% upside from its current level considering the given target price. It is a midcap company with a market valuation of Rs. 6,356.24 crore.

Valuation and view

Nuvama said, "Despite being confident of a rise in patient visits and test samples (driven by network expansion and the addition of laboratories), we believe realisation per patient is not expected to increase in near term given the fierce competition in the market. Although the focus on specialised tests and achieving a better operating leverage should aid profit margin, it may come in lower than what we estimated earlier. We forecast a consolidated revenue/EBITDA/PAT CAGR of 11%/13%/20% over FY23-25 and revise our DCF-based TP to INR1,670 (earlier INR1,850), which implies an EV/EBIDTA ratio of 23x on FY25 numbers. Retain 'BUY'.

Stock Outlook - Current Market Price, 52 Week Low/High, Returns

The current market price of the stock is Rs. 1,241.30/share on NSE, down 4.27% from its previous close. The stock hit the 52 week high at Rs. 2,009.20/share and 52-week low at Rs. 1,171.35/share, respectively.

The stock has continuously given negative returns in the past 5 years. It has fallen 5.77% in 1 week, 4.18% in 1 month and 7.92% in 3 months, respectively. It has fallen 29.2% in 1 year and 1.85% in 3 years, respectively. It was listed on 15 April 2019, and since listing its share value gained 29.32%.

Disclaimer - The stock has been picked from the brokerage report of Nuvama. 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.