Metropolis up 3% on plans to foray into Western UP with Scientific deal

Metropolis Healthcare plans to acquire Western UP-based Scientific Pathology on a slump sale basis

Metropolis Healthcare share price: Investors made a beeline for shares of diagnostics chain Metropolis Healthcare in early trades on Tuesday, driving it higher in an otherwise weak market.

  At 12:12 PM, Metropolis Healthcare shares were trading higher by 2.74 per cent, at Rs 1,606.95. Shares of the company had climbed nearly 3 per cent to touch an intra-day high of Rs 1610 on the BSE. In contrast, the BSE Sensex was higher by 167 points, or 0.23 per cent, at 72,918.27.

  The run-up in Metropolis Healthcare's share price came, after the company's announcement on Monday, February 3, that one of its units, Metropolis Clinical Pathology Private Limited will acquire a Western Uttar Pradesh-based Scientific Pathology, through a Business Transfer Agreement on a slump sale basis.

  Scientific Pathology is an Agra-based diagnostics company founded in 1984 by Dr Ashok Kumar Sharma. The company operates three laboratories and eleven collection centres in the region, including two NABL-accredited labs. It has a strong business to consumer (B2C) focus, with 90 per cent of its revenue generated from walk-in patients. In FY24, the company had recorded a turnover of Rs 26 crore. 

  “Scientific Pathology’s strong B2C focus and 40-year legacy align seamlessly with our vision to lead in these markets,” said Ameera Shah, promoter and executive chairperson of Metropolis Healthcare.

  "The company also has a strong digital presence, with over 50,000 app downloads and 35,000 social media followers, reinforcing its position as a digital-first healthcare provider," Metropolis stated in an exchange filing.

  "This strategic move strengthens Metropolis’ presence in Western Uttar Pradesh, accelerates its B2C expansion, and unlocks growth opportunities across the state and beyond," it added.

  Under the deal signed between the two companies, the total consideration for the acquisition will be between Rs 55-83 crore, determined at 12.2x of the adjusted Ebitda over a defined assessment period. 

  The transaction will be executed through a Securities Subscription cum Shareholders’ Agreement (SHA), backed by Metropolis Healthcare, the company added. 

  Upon completion, Metropolis Clinical Pathology will transition from a wholly owned subsidiary while continuing to be an integral part of the Metropolis Healthcare Group.

  Metropolis December quarter results

  The company reported a 15.4 per cent increase in consolidated net profit at Rs 31.36 crore in Q3FY25, compared to Rs 27.16 crore in Q3FY24. Revenue from operations for the company grew 10.9 per cent annually to Rs 322.77 crore in the quarter ended December 31, 2024.

  Profit before tax jumped 14.9 per cent to Rs 42.34 crore in Q3FY25, compared to Rs 36.85 crore recorded in the same quarter last year.

  The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 72 crore, registering a growth of 9.4 per cent, compared to Rs 66 crore posted in the corresponding quarter last year. The Ebbitda margin slightly decreased to 22.20 per cent in Q3FY25, down from 22.50 per cent in Q3 FY24.