Metropolis Healthcare jumps 17% on strong long-term growth prospects

The brokerage expects the healthcare company to benefit from its aggressive B2C expansion, where it has expanded its network touch points by ~6.6X over the past 3.5 years

Shares of Metropolis Healthcare jumped 17 per cent to Rs 1,330 on the BSE on Wednesday after Kotak Institutional Equities upgraded the stock from 'sell' to 'add' on attractive valuation and on long-term structural growth drivers looking intact.

"Post sharp correction in share price, the stock now trades at 27X FY2022E EPS (30X excluding NACO)... With favorable structural growth drivers in the diagnostics industry, Metropolis Healthcare remains well positioned to deliver 11-12 per cent revenue growth over the next 10 years," wrote analysts in a recent report. The revised the stock recommendation to 'add' with revised DCF based fair value of