Near-term headwinds may affect Metropolis

Firm's Q4 revenue grew by 10% Y-o-Y, driven by patient, test volume growth

- RAM PRASAD SAHU

The stock of diagnostics major Metropolis Healthcare is down 21 per cent over the last three months. A weak December quarter (Q3FY25) performance, downward earning revisions, lower volume/margin expectations, and regulatory worries have weighed on investor sentiment. While the stock has been under pressure due to multiple concerns, some brokerages believe that the correction has fully discounted these worries.

The near-term triggers for the stock are the March quarter (Q4FY25) performance and the acquisition of Dr Ahujas Pathology and Imaging Centre (DAPIC) earlier this week.

For Q4, the company is likely to disappoint the Street and its revenue growth is expected to be lower than brokerage estimates. In its Q4 update, the company reported that revenues grew by 10 per cent on a year-on-year (Y-o-Y) basis and was driven by patient volume growth, test volume growth, and change in product mix, coupled with realisation benefits. Business to consumer (B2C) revenues saw growth of 14 per cent Y-o-Y.