Core revenues grew 16% YoY driven by 16% patient growth and stable pricing. Reduced tax rate (25% vs 33%) drove 43% YoY reported PAT growth.

Key positives from the results:

  1. Rising share of B2C in focus cities (up 4ppt YoY to 56% in 1HFY20);
  2. Improving cash conversion (112% pre-tax CFO/EBITDA in 1HFY20 vs 90% in 1HFY19);
  3. control in employee costs
  4. Indications of price hikes after 2 years.

Valuation and View: Metropolis is the best diagnostic bet in western India as it builds Dr. Lal type of moat in West India by milking its reputation and test range through deepening customer reach. At current price would recommend to be cautious on the stock.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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