Ambit initiates coverage on Metropolis Healthcare, target price Rs 1168

Ambit has initiated coverage on Metropolis Healthcare in the long term with a target price of Rs 1168. Shares of Metropolis Healthcare ended up 8.9% at Rs 1162.20 on Friday while the Sensex closed 263.86 points up 37,332.79.

Investment Rationale
Metropolis is building a DLPL-like moat in West India by milking its reputation and test range through deepening customer reach, said Ambit. With weakening competition and scope for market share gains in West, 16% revenue CAGR is doable over FY19-22 despite smaller addressable market and higher PE inflow, said Ambit.