Metropolis Healthcare share price jumps over 7.5%, hits 52-week high; here are the big reasons why

Metropolis Healthcare share price has hit a 52-week high after a Q4 business update by the company.

In what is definitely very good news for its shareholders, Metropolis Healthcare share price has rocketted by over 7.5%. The added significance of this surge is that the current level is also its 52-week high. All of this good news stems from a strong Q4 update. The company is one of the leading Indian diagnostics entities in India.

Metropolis Healthcare share price rose to ₹1935 today. (Reuters)

As a reaction to a strong Q4 business update released after market hours on April 10, Metropolis Healthcare share price today jumped by as much as 7.5% intraday and hit the 52-week high of ₹1935.

Metroplois Healthcare has announced that in the fourth quarter of last fiscal year, it had logged around a 10% YoY increase in overall revenue besides registering a 15% YoY growth in revenue for its core business. In effect, Metropolis managed to maintain the rising trend in sales volumes in the various segments it is present.

Metropolis Healthcare’s core revenue growth was powered by volume growth of around 8% and RPP growth of 7% YoY during Q4 of last fiscal. However, do note that this does not include revenue from Covid, Covid Allied Tests, and PPP Contracts.

Metropolis Healthcare also revealed that RPP growth came from segments like premium wellness, specialty tests as well as price hikes.

Its B2C revenues jumped 18% YoY for Q4 FY24.

Importantly, Metropolis Healthcare is now a debt-free company as in the current quarter, it has repaid its debt.

Competitive Easing

The going has been good and some of that is attributable to the fact that Metropolis Healthcare has seen competition easing over the past 6 to 12 months. The reason behind that is that the fresh entrants in this space prioritize unit economics and profitability rather than deploying deep discounting methods. This has allowed the company to increase its market share where it is strong and to this has been added expansion into fresh territories - the approach has been aggressive, according to the company, as far as lab and network expansion are concerned.

Another company initiative that is paying off is its focus on getting fresh talent, boosting IT infra, and refining processes. This has seen tangible gains in B2C and B2B sales volumes.

Metropolis Healthcare also added that increased volumes and successful price adjustments have pushed sequential and annual rise in EBITDA margins.