Core acquisition adds to Metropolis Healthcare's long-term growth plans

Market share gains in the B2C portfolio are visible and Tier III+ markets are likely to contribute to the patient volume growth guidance

Metropolis Healthcare (MHL) has decided to acquire a 100 per cent stake in Gurgaon-based Core Diagnostics for Rs 247 crore. This is about 2.2x FY24 (financial year 2023-24) enterprise value (EV)/sales and estimated 14x FY26 EV/Ebitda for the deal. The acquisition will help Metropolis to scale up its market share in oncology test sales from 4 per cent to 10 per cent in the fast-growing oncology market in India (17.5 per cent compound annual growth rate, or CAGR, estimated during CY23-28, as per MHL). It will also help MHL to increase presence in North and East India. The management expects