Metropolis Healthcare - Q4 FY21 Result Update - YES Securities

(Rating: ADD, TP: Rs2,800, Upside: 11%)

- Expect regular patient volumes to rebound strongly in current year (after 2% dip in FY21) so as to revert to prior trend rate of +13%

- We expect the benefit of increased geographic foothold to add to patient growth from FY23 and drive strong volumes in FY24.

- Revenue mix would continually improve with c40% of revenues coming from specialized tests (56% in FY21 - heightened due to COVID), a strong barrier which can protect portfolio from price wars in the routine to semi -specialized test market.

- We forecast strong growth over FY21-23 driven by 1) 23% patient volume cagr 2) addition of ~Rs900mn annualized Hi-Tech revenues 3) 225bps margin gain. We are 6% ahead of consensus on FY23 EPS and assume coverage with ADD rating and TP Rs2,800, based on 55x FY23 EPS.

Source : Equity Bulls

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