METROPOLIS - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.1

🧪 Fundamental Analysis: Metropolis Healthcare (METROPOLIS)

Metropolis is a leading diagnostics chain in India, but its current valuation and earnings trajectory suggest caution for long-term investors.

Metric Value Implication

Market Cap ₹10,114 Cr. Mid-cap; niche player in diagnostics

Stock P/E 72.3 Overvalued vs. Industry PE of 51.6

PEG Ratio -6.22 Negative — implies declining earnings growth

ROE / ROCE 11.5% / 14.7% Moderate — not exceptional for healthcare sector

Dividend Yield 0.21% Minimal — not attractive for income investors

Debt-to-Equity 0.15 Low leverage — financially stable

EPS ₹28.0 Decent earnings base

Profit Growth (QoQ) -20.0% Weak — declining profitability

📉 Technical & Trend Analysis

Current Price: ₹1,950

DMA 50 / DMA 200: ₹1,822 / ₹1,810 — trading above both, short-term bullish

RSI: 57.5 — neutral zone

MACD: +61.0 — bullish momentum

Volume: Above average — possible accumulation

⚠️ Is It a Good Long-Term Investment?

Not at current levels. While Metropolis has brand strength and stable financials, its high P/E, negative PEG, and declining profits make it a risky long-term bet unless earnings growth resumes. ROE and ROCE are decent but not compelling enough to justify the premium valuation.

🎯 Ideal Entry Price Zone

Buy Zone: ₹1,600–₹1,700

Near historical support and better valuation

Entry only if PEG turns positive and profit growth stabilizes

Accumulate gradually if sector sentiment improves

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 12–18 months — monitor earnings recovery

Exit Strategy

Partial Exit near ₹2,300 if valuation remains stretched

Full Exit if PEG stays negative and ROE drops below 10%

Hold only if quarterly PAT growth resumes and diagnostics demand strengthens

Would you like a comparison with peers like Dr. Lal PathLabs or Thyrocare to explore better-positioned diagnostics stocks?

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