Near-term headwinds may keep Metropolis Healthcare under pressure

The stock of diagnostics major Metropolis Healthcare is down 21 per cent over the last three months. A weak December quarter (Q3FY25) performance, downward earnings revisions, lower volume/margin expectations, and regulatory worries have weighed on investor sentiment. While the stock has been under pressure due to multiple concerns, some brokerages believe that the correction has fully discounted these worries.

 

The near-term triggers for the stock are the March quarter (Q4FY25) performance and the acquisition of Dr Ahujas’ Pathology and Imaging Centre (DAPIC) earlier this week.

 

For Q4, the company is likely to disappoint the Street and its revenue growth is