Metropolis Healthcare - Q2FY21 Provisional Data - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"Metropolis Healthcare has achieved the highest ever quarterly revenue in Q2FY21. The revenue for Q2FY21 has nearly doubled from Q1FY21 and has grown by ~25% from Q2FY20 levels. In September 2020, revenue growth stood at ~40% as compared to September 2019 due to an increase in COVID testing month over month and improving non-COVID business performance. The Company has reached ~85% of last year levels in Q2FY21 for non-COVID business and in comparison to 71% in Q1FY21. In September 2020, the Company has achieved normalcy in non-Covid business compared to September 2019. With scale-up of non-COVID business, sustained cost management measures as well as operating leverage on-account of significant uptick in revenue, the EBITDA margins in Q2FY21 have improved over Q2FY20. We are positive on the long term prospects of the sector as well as on the Company, we have a buy recommendation on the stock with a target price of Rs.2156."

Source : Equity Bulls

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