METROPOLIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | METROPOLIS | Market Cap | 9,827 Cr. | Current Price | 1,898 ₹ | High / Low | 2,263 ₹ |
| Stock P/E | 73.6 | Book Value | 256 ₹ | Dividend Yield | 0.21 % | ROCE | 13.4 % |
| ROE | 10.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,912 ₹ | DMA 200 | 1,921 ₹ |
| Chg in FII Hold | -0.84 % | Chg in DII Hold | 1.63 % | PAT Qtr | 46.6 Cr. | PAT Prev Qtr | 35.6 Cr. |
| RSI | 50.8 | MACD | -19.3 | Volume | 44,465 | Avg Vol 1Wk | 43,615 |
| Low price | 1,315 ₹ | High price | 2,263 ₹ | PEG Ratio | -5.27 | Debt to equity | 0.11 |
| 52w Index | 61.6 % | Qtr Profit Var | 10.3 % | EPS | 25.8 ₹ | Industry PE | 36.0 |
📊 Financials: Metropolis Healthcare has a market cap of 9,827 Cr. with quarterly PAT at 46.6 Cr., up from 35.6 Cr. (10.3% growth). ROE at 10.5% and ROCE at 13.4% reflect moderate efficiency. Debt-to-equity ratio of 0.11 indicates low leverage, providing financial stability. EPS stands at 25.8 ₹, showing modest profitability. Cash flows remain steady, supported by diagnostic services, though margins are under pressure.
💹 Valuation: Current P/E of 73.6 is far above the industry average of 36.0, suggesting significant overvaluation. P/B ratio is ~7.41 (1,898 ₹ / 256 ₹), which is expensive relative to book value. PEG ratio of -5.27 highlights weak growth prospects. Intrinsic value appears lower than current market price, making the stock unattractive at present levels despite sector demand.
🏥 Business Model & Competitive Advantage: Metropolis operates in diagnostic and pathology services, with competitive advantage in brand recognition, wide network, and urban presence. However, profitability is sensitive to competition from peers, pricing pressures, and regulatory policies in healthcare.
📈 Entry Zone: With RSI at 50.8 (neutral) and support around 1,700–1,800 ₹, accumulation is advisable only at lower levels. Current price at 1,898 ₹ remains expensive relative to fundamentals.
🕰️ Long-Term Holding Guidance: Metropolis is fundamentally stable but currently overvalued. Long-term holding is not recommended unless earnings growth accelerates and valuations normalize.
Positive
- Debt-to-equity ratio at 0.11 shows low leverage.
- Quarterly PAT improved to 46.6 Cr. from 35.6 Cr.
- DII holdings increased by 1.63%, showing domestic investor confidence.
Limitation
- Extremely high P/E (73.6) compared to industry average (36.0).
- P/B ratio (~7.41) is expensive relative to book value.
- PEG ratio of -5.27 indicates poor growth prospects.
- ROE (10.5%) and ROCE (13.4%) are moderate.
Company Negative News
- Valuation multiples remain stretched compared to peers.
- FII holdings decreased by 0.84%, showing reduced foreign confidence.
Company Positive News
- Quarterly PAT improved sequentially (46.6 Cr. vs 35.6 Cr.).
- Strong domestic institutional investor support (+1.63%).
Industry
- Diagnostics sector benefits from rising demand for healthcare services.
- Industry P/E at 36.0 highlights Metropolis’ overvaluation.
Conclusion
⚖️ Metropolis Healthcare is a stable company with strong brand presence but currently overvalued with weak growth prospects. Entry is advisable only near 1,700–1,800 ₹, and long-term holding is not recommended unless earnings growth improves and valuations normalize.