Metropolis Healthcare shares rise 3% after acquiring Core Diagnostics

Shares of diagnostic firm Metropolis Healthcare surged 2.88 per cent at Rs 2,250 per share on the BSE in Tuesday’s intraday trade. This came after the company on Monday , announced today the acquisition of Delhi headquartered Core Diagnostics. 

 

Metropolis Healthcare said that the acquisition will enhance capabilities in advanced cancer testing, while deepening its presence in Northern and Eastern India and driving market share expansion in the specialised segment across the country. 

 

Metropolis is set to acquire a 100 per cent stake in Core Diagnostics through a combination of cash and stock, financing 55 per cent of the transaction in cash and 45 per cent through an equity swap, totalling Rs 246.8 crores. 

 

Core Diagnostics registered revenue of Rs 110 crores in FY2023-24. The equity issuance is subject to shareholder approval, and the acquisition is expected to be completed within 60 days, the company said in a statement. 

 

“Indian Oncology (cancer) market, which is expected to expand at a CAGR of 17.5 per cent from 2023 to 2028.With approximately 1.4 million new cancer cases and nearly a million deaths annually in India, there is a critical need for advanced cancer testing nationwide. By integrating Core’s expertise and infrastructure with Metropolis' established strengths, we aim to reinforce our leadership in advanced cancer testing and establish a Centre of Excellence in Cancer Diagnostics” said Ameera Shah, promoter and executive chairperson, Metropolis Healthcare.

 

Metropolis Healthcare’s share price history

 

On the equities side, Metropolis Healthcare’s stock outperformed the market year to date as it has surged 31 per cent, while gaining 32 per cent in the last one year. In comparison BSE Sensex has risen 12 per cent year to date and 16 per cent in a year. 

 

The company has a total market capitalisation of Rs 11,258.05. Its shares are trading at a price to earnings multiple of 85.25 times and at an earning per share of 25.76.  

 

At 11:13 AM; the shares of the company were trading 0.41 per cent higher at Rs 2,195.95 a piece. By comparison, the BSE’s Sensex was up 0.12 per cent at 81,602.83 level.