METROPOLIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | METROPOLIS | Market Cap | 9,879 Cr. | Current Price | 476 ₹ | High / Low | 566 ₹ |
| Stock P/E | 68.6 | Book Value | 64.0 ₹ | Dividend Yield | 0.21 % | ROCE | 13.4 % |
| ROE | 10.5 % | Face Value | 2.00 ₹ | DMA 50 | 466 ₹ | DMA 200 | 474 ₹ |
| Chg in FII Hold | -1.25 % | Chg in DII Hold | 1.07 % | PAT Qtr | 38.0 Cr. | PAT Prev Qtr | 46.6 Cr. |
| RSI | 56.5 | MACD | 6.27 | Volume | 88,177 | Avg Vol 1Wk | 92,508 |
| Low price | 397 ₹ | High price | 566 ₹ | PEG Ratio | -4.90 | Debt to equity | 0.11 |
| 52w Index | 47.1 % | Qtr Profit Var | 38.9 % | EPS | 6.66 ₹ | Industry PE | 34.6 |
📊 Metropolis Healthcare (METROPOLIS) shows weak fundamentals with a market cap of ₹9,879 Cr. and current price of ₹476, trading near its 50 DMA (₹466) and 200 DMA (₹474), reflecting neutral technicals. Efficiency metrics are modest — ROE at 10.5% and ROCE at 13.4% — while valuation is stretched with a P/E of 68.6 compared to the industry average of 34.6. EPS at ₹6.66 is low relative to price, and PEG ratio at -4.90 highlights poor growth-adjusted valuation. Debt-to-equity at 0.11 indicates manageable leverage. Quarterly PAT declined (₹46.6 Cr → ₹38.0 Cr), showing earnings weakness. Technical indicators (RSI 56.5, MACD positive) suggest mild momentum. Institutional flows are mixed, with FIIs reducing (-1.25%) and DIIs increasing (+1.07%).
💡 Entry Zone: ₹440–₹460 (near support levels)
📈 Long-Term Holding: Not attractive for long-term investors due to stretched valuations and weak profitability. Suitable only for cautious short-term trades with strict risk management.
✅ Positive
- Debt-to-equity ratio (0.11) reflects manageable leverage
- DII holdings increased (+1.07%), showing domestic confidence
- Stock trading near DMA support levels, offering technical stability
⚠️ Limitation
- High valuation (P/E 68.6 vs industry 34.6)
- Negative PEG ratio (-4.90) highlights poor growth-adjusted valuation
- Weak EPS (₹6.66) relative to price
- Quarterly PAT decline (₹46.6 Cr → ₹38.0 Cr)
- FIIs reduced holdings (-1.25%), showing weaker foreign confidence
📉 Company Negative News
- Profit decline in recent quarter
- Valuation stretched compared to peers
📈 Company Positive News
- DII support increased (+1.07%)
- Technical indicators (MACD positive, RSI neutral) show mild momentum
🏭 Industry
- Diagnostics sector trades at P/E 34.6, making METROPOLIS highly overvalued
- Sector outlook remains positive with rising demand for healthcare services, but competition is intense
🔎 Conclusion
METROPOLIS is fundamentally weak with stretched valuations, modest efficiency, and declining profitability. Entry near ₹440–₹460 offers a cautious short-term opportunity. Long-term investors should avoid until earnings growth stabilizes and valuations normalize.