Metropolis Healthcare Shares Surge 4% After Subsidiary Transfer
By ThePip Desk
Metropolis Healthcare shares rose over 4% to Rs 602 following a slump sale of its EQAS business to a subsidiary, with brokerages maintaining positive outlooks.
Metropolis Healthcare Ltd. shares experienced a significant surge on Friday, rising over 4% after the company transferred its External Quality Assessment Services (EQAS) Business Division. The move involved a slump sale to its wholly-owned subsidiary, Metropolis Quality Solutions Private Limited (MQSPL), for a consideration of Rs 1.25 crore.
The transaction was discharged through the issuance of equity shares by MQSPL to the parent company. During the session, Metropolis Healthcare stock traded at Rs 596.95 and touched an intraday high of Rs 602 apiece.
Key Share and Transaction Details
- Share price gain: Over 4%
- Intraday high: Rs 602
- Trading price: Rs 596.95
- Slump sale consideration: Rs 1.25 crore
- NSE Nifty 50 Index rise: 0.25%
Brokerage firms have maintained optimistic perspectives on Metropolis Healthcare following these developments. Kotak Securities reiterated an ‘Add’ rating, setting a target price of Rs 655, citing strong growth visibility.
Kotak anticipates sustained revenue growth of 14-15% for FY27 and projects a 300 basis points expansion in Ebitda margin between FY26 and FY29. This margin growth is expected from increased contributions from TruHealth, specialty tests, network expansion, and improved core business margins.
Analyst Ratings and Outlook
ICICI Securities also maintained a ‘Buy’ rating for the company, with a target price of Rs 675. The firm highlighted Metropolis’s strategic growth initiatives planned for the next three years.
- Analysts covering: 23
- ‘Buy’ recommendations: 19
- ‘Hold’ recommendations: 2
- ‘Sell’ recommendations: 2
- Average 12-month consensus target: Rs 668.60
- Potential upside: 11.9%
Management reaffirmed its FY27 guidance of 14-15% revenue growth and a 100-150 bps margin expansion, aiming for margins to reach 27-28% over the next three years. These initiatives encompass network expansion, enhanced contributions from TruHealth and specialized tests, productivity gains, AI adoption, and potential acquisitions.
Despite Friday’s strong performance, the stock has faced substantial declines over the past year, falling 72.90% in the last 12 months and 69.27% year-to-date. The average 12-month consensus price target of Rs 668.60 suggests an 11.9% potential upside, according to Bloomberg data.