Metropolis Healthcare share price: The stock has given up more than 22 percent since the diagnostics chain reported its earnings for the December quarter. On Tuesday, the shares declined almost 9 percent to an intraday low of Rs 1870.90 on BSE.
The shares of Metropolis Healthcare continued to decline for the third straight day on Tuesday. The stock has been falling after the company reported weaker-than-estimated financial results for the December quarter on Friday after market hours.
The stock tumbled nearly 9 percent in intraday trade today to day’s low of Rs 1870.90 on BSE. At this level, the Metropolis Healthcare shares are just 24.4 points short of hitting the 52-week low.
The stock has fallen more than 22 percent after the Q3 results announcement on Friday evening.
In 2022 (year-to-date), the stock has decreased investors’ wealth by 43.19 percent against a 3.71 drop in the benchmark index Sensex during the period.
Metropolis Healthcare’s net profit declined 29.69 percent to Rs 41.2 crore for the third quarter ended December 31, 2021. The diagnostics chain had reported a net profit of Rs 58.6 crore in the same period of the previous fiscal.
Revenues, however, increased to Rs 293.1 crore in the period under review as against Rs 274.7 crore in the same period of 2020-21 fiscal. The company also said its board has declared an interim dividend of Rs 8 per share for the financial year 2021-22.
Global brokerage Credit Suisse has maintained its ‘underperform’ call on Metropolis Healthcare shares as it believes the downside risk is still high and the stock is expensive despite correction. It has set a target price of Rs 1,700 per share, which was quoted at Rs 1,970.80 at the time of writing. This means the brokerage expects a 13 percent further downside.
According to Credit Suisse, the stock is trading at 30 percent plus premium to India-focussed pharma stocks. Consensus' FY24e EPS has 20 percent downside, it said.
Morgan Stanely, on the other hand, has maintained its ‘overweight’ call even as it has cut its target price to Rs 3,317 per share from Rs 3,618 earlier. It is of the view the company is a play on India's unfolding diagnostics story.
Growth visibility is driven by its asset-light network expansion and higher tests, the brokerage said. It has, however, reduced the EPS Estimates by 4.8 percent for FY23 and -5.1 percent for FY24.
At 12:14 pm, the shares were trading 5.05 percent lower at Rs 1,950 on BSE and were down 5.21 percent to Rs 1,944.40 on NSE.
First Published: IST