Mehabe score: 8 G Factor: 6 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 6.
Description
Metropolis Healthcare is engaged in the business of providing pathology and related healthcare services.Site:METROPOLISMain Symbol:METROPOLIS
Stock trades at 2803.0, above its 50dma 2701.67. It also trades above its 200dma 2262.47. The stock remains bullish on techicals
The 52 week high is at 3144.45 and the 52week low is at 1421.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 21.06% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 29.61%
– has been maintaining a healthy dividend payout of 36.52%
Weakness
– Stock is trading at 20.29 times its book value
Competition
– The industry trades at a mean P/E of 43.7x. Max Healthcare trades at the industry’s max P/E of 913.59x. METROPOLIS trades at a P/E of 78.3x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 9.0. METROPOLIS has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by Apollo Hospitals: a return of 20.56 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 292.0 cr compared to Rs 207.0 cr for period ended Mar 2020, a rise of 41.1%
Operating Profits reported at Rs 96.0 cr for period ended Mar 2021 vis-vis 51.0 for period ended Mar 2020 .
Operating Margins expanded 823.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.0 compared to Rs 11.46 for previous quarter ended Dec 2020 and Rs 3.06 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 998.0 cr for period ended Mar 2021 vis-vis sales of Rs 856.0 cr for the period ended Mar 2020, a healthy growth of 14.2%. The 3 year sales cagr stood at 15.5%.
Operating margins expanded to 29.0% for period ended Mar 2021 vis-vis 28.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 183.0 cr for period ended Mar 2021 vis-vis sales of Rs 127.0 cr for the period ended Mar 2020, rising 30.6%.
Company recorded a healthy Net Profit CAGR of 20.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 249.0 cr for period ended Mar 2021 vis-vis Rs 215.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 30.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 27% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 27.24% vis-vis 27.2% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 6.65% vis-vis 7.78% for Dec 2020
Conclusion
– has delivered good profit growth of 21.06% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 29.61%
– has been maintaining a healthy dividend payout of 36.52% – Stock is trading at 20.29 times its book value
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2701.67 and is trading at 2803.0, thus bullish price action wise.
