Metropolis Healthcare Ltd - Another Diagnostic Player

But there is difference in MR’s role for medicines and Diagnostics.
In case of medicines, the medicine can be available in any chemist shop, here the important is medicine not the shop.
However, in case of Diagnostic Dr. prescribe the test not the Lab. So the Pan India player, the reliable player will can get patients.

when doctors prescribe brands irrespective of the chemist shop ,doctors get a cut since the MR scouts in the doctor’s vicinity area to gauge how many prescription came from a doctor’s name. Similarly for tests ,the doctors mention get these tests done at this lab and in many cases now doctor’s clinics have also become collection centers, especially for METROPOLIS.

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UTI Mutual fund has increased its stake in metropolis from ~7.05 to ~7.2%

Q4 FY23 Results

Non COVID revenue up 15% yoy, Hitech revenue flat.
Ebitda margins expanded to 24.9% from 24.5%, when adjusted for network expansion they are at pre-Covid level of 27%
Company expecting to add 100 new labs by FY25. Mumbai and Pune continue to be focus markets

Have significantly reduced debt taken for Hitech acquisition to ~Rs 70 crore.

Valuation is currently at similar multiples as what Metropolis paid for Hitech acquisition.

Discl: Invested