METROPOLIS - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.0
| Stock Code | METROPOLIS | Market Cap | 9,776 Cr. | Current Price | 1,886 ₹ | High / Low | 2,263 ₹ |
| Stock P/E | 73.2 | Book Value | 256 ₹ | Dividend Yield | 0.21 % | ROCE | 13.4 % |
| ROE | 10.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,952 ₹ | DMA 200 | 1,928 ₹ |
| Chg in FII Hold | -0.31 % | Chg in DII Hold | 0.70 % | PAT Qtr | 46.6 Cr. | PAT Prev Qtr | 35.6 Cr. |
| RSI | 31.1 | MACD | -18.3 | Volume | 38,987 | Avg Vol 1Wk | 35,037 |
| Low price | 1,315 ₹ | High price | 2,263 ₹ | PEG Ratio | -5.24 | Debt to equity | 0.11 |
| 52w Index | 60.3 % | Qtr Profit Var | 10.3 % | EPS | 25.8 ₹ | Industry PE | 30.9 |
- 📈 Revenue Growth: Quarterly PAT improved from ₹35.6 Cr to ₹46.6 Cr (+10.3%), showing short-term recovery
- 💰 Profit Margins: Moderate, ROE at 10.5% and ROCE at 13.4%
- ⚖️ Debt Ratio: Debt-to-equity at 0.11, low leverage
- 💵 Cash Flows: EPS of ₹25.8, modest earnings relative to valuation
- 📊 ROE/ROCE: Reasonable but below industry leaders
- 📉 Valuation: P/E 73.2 vs Industry PE 30.9, significantly overvalued
- 📚 Book Value: ₹256, P/B ~7.36
- 📈 PEG Ratio: -5.24, indicates weak or negative growth outlook
- 🏥 Business Model: Diagnostic chain offering pathology and healthcare testing services across India
- 🛡️ Competitive Advantage: Strong brand presence, wide network of diagnostic centers, trusted healthcare services
Positive
- ✅ Low debt-to-equity ratio (0.11)
- ✅ Strong brand presence in diagnostics
- ✅ Quarterly PAT recovery (+10.3%)
- ✅ Institutional support with DII holdings increased (+0.70%)
Limitation
- ⚠️ Extremely high P/E ratio (73.2) compared to industry average (30.9)
- ⚠️ PEG ratio negative (-5.24), weak growth outlook
- ⚠️ ROE and ROCE modest compared to peers
- ⚠️ Dividend yield at 0.21%, limited shareholder returns
Company Negative News
- 📉 Reduction in foreign institutional investor holdings (-0.31%)
- 📉 RSI at 31.1 indicates oversold momentum
Company Positive News
- 🌍 Expansion of diagnostic centers and service offerings
- 💡 Quarterly profit improvement vs previous quarter
- 📈 Increased DII holdings (+0.70%)
Industry
- 💹 Industry PE at 30.9, Metropolis trades at a steep premium
- 📈 Diagnostics sector supported by rising healthcare awareness and preventive testing demand
Conclusion
Metropolis shows moderate fundamentals with low debt and strong brand presence, but valuations are stretched with high P/E and negative PEG ratio. Profitability remains modest compared to peers. Entry zone is attractive only near ₹1,600–1,700 (close to DMA 200 and oversold RSI). Long-term holding is risky unless earnings growth accelerates and valuations normalize.
Would you like me to extend this into a peer benchmarking overlay comparing Metropolis with Dr. Lal PathLabs and Thyrocare, or should we run a sector rotation scan to identify stronger compounding opportunities across diagnostics and healthcare services?
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