Metropolis Healthcare IPO: Comparison with Peers

Metropolis Healthcare IPO opens Wednesday 3rd April 2019 with an offer for sale (OFS) of up to 1.37 crore equity shares of face value Rs. 2 each. Metropolis Healthcare IPO is in the price band of Rs. 877 to Rs. 880 per share and involves sale by both promoters and PE investor Carlyle.

A Comparison of Metropolis Healthcare Ltd. with Peers Dr. Lal PathLabs and Thyrocare Technologies Ltd on financial parameters is depicted. All the the three firms are primarily involved in providing diagnostic services to patient through a variety of Labs and Networks.

ParticularsMetrop.Dr LalThyrocare
Market Cap in Rs. Cr4,4188,7022,863
share capital10.048353.72
CMP in Rs.8801,044533
Face Value21010
Revenue FY18 in cr643.571056.92331.79
Revenue 9m FY19559.31902273
OPM %25.60%24.9341.17
Net profit FY18109.75170.7796.04
Net Profit 9m FY19)89.8115273.3
NPM ( FY18)17.05%16.16%28.95%
EPS FY 1821.8620.4917.88
EPS FY 19 ann23.8524.3218.19
PE (Fy18)40.2550.9629.81
PE Fy19 (9 m ) ann36.8942.9429.30
Book Value93.27104.8888.26
Price / BV9.439.966.04
ROE  %24.30%24.64%22.30%
Sales 3 yr CAGR16.34%*17.02%22.59
Net Profit 3 year15.72%*21.34%27.38
Market Cap/ Sales6.868.238.63
* 2 yrs Cagr

Based on these parameters Metropolis Healthcare IPO does not look to be priced exorbitantly (on PE Basis) and lies between the two players in terms of size and compares reasonably well with the other two peers looking at its ROE.

Standard disclaimer:  I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering and Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2)  Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors.  I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or  leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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