External broker reports(aggregated public sources), Edelweiss Broking Limited

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External broker reports(aggregated public sources)

Equity Bottom-Up

Metropolis Healthcare Limited / Equity Bottom-Up

<p>Healthy expansion plan; major beneficiary of sector consolidation</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Healthy expansion plan; major beneficiary of sector consolidationContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Metropolis Healthcare Ltd Rs Company Update

<p>Strong performance led by core business; Maintain BUY</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Strong performance led by core business; Maintain BUYContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Metropolis Healthcare Ltd Rs Q4FY21 Result Update

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<div><p>The Indian mutual fund industry has assets of almost INR 6.6 trillion across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.</p></div><div>
<p>The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.</p>
<p>At the next recategorization in July 2021, we see 7 stocks moving from the mid cap segment to the large cap segment with an equal number of stocks moving the other way, and 13 stocks are expected to move from the small cap segment to the mid cap segment with the 16 stocks moving from the mid cap to the small cap segment. There are 3 recent listings that will enter the mid cap segment with over 18 joining the small cap segment.</p>
<p>Historically, the stocks migrating upward to a higher market cap segment have outperformed stocks that migrate to a lower market cap segment over the 1 month and 2 month period post the publishing of the AMFI list. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.</p>
</div>

The Indian mutual fund industry has assets of almost INR 6.6 trillion across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.
The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.
At the next recategorization in July 2021, we see 7 stocks moving from the mid cap segment to the large cap segment with an equal number of stocks moving the other way, and 13 stocks are expected to move from the small cap segment to the mid cap segment with the 16 stocks moving from the mid cap to the small cap segment. There are 3 recent listings that will enter the mid cap segment with over 18 joining the small cap segment.
Historically, the stocks migrating upward to a higher market cap segment have outperformed stocks that migrate to a lower market cap segment over the 1 month and 2 month period post the publishing of the AMFI list. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.


India: Stock Reclassification & Active Portfolio Management

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

<p><a href="https://www.smartkarma.com/entities/metropolis-health-services-limited" target="_blank" data-smartkarma-citation="entities:27829:1" rel="noopener">Metropolis Health Services Limited (METROHL IN)</a> is relatively a younger player in the Indian Diagnostics industry compared to competitors like <a href="https://www.smartkarma.com/entities/dr-lal-pathlabs-ltd" target="_blank" data-smartkarma-citation="entities:26927:1" rel="noopener">Dr Lal PathLabs Ltd (DLPL IN)</a> and <a href="https://www.smartkarma.com/entities/thyrocare-technologies-ltd" target="_blank" data-smartkarma-citation="entities:22694:1" rel="noopener">Thyrocare Technologies (THYROCAR IN)</a>, in terms of pan-India ambitions. However, despite its late entrance, Metropolis has scaled its business quite rapidly through strategic acquisitions and organic growth.</p>
<h3>Insight Flow</h3>
<ul>
<li>Investment Thesis</li>
<li>Risks &amp; Mitigating Factors</li>
<li>Valuation</li>
<li>Conclusion</li>
</ul>

Metropolis Health Services Limited (METROHL IN) is relatively a younger player in the Indian Diagnostics industry compared to competitors like Dr Lal PathLabs Ltd (DLPL IN) and Thyrocare Technologies (THYROCAR IN), in terms of pan-India ambitions. However, despite its late entrance, Metropolis has scaled its business quite rapidly through strategic acquisitions and organic growth.
Insight Flow

Investment Thesis
Risks &amp; Mitigating Factors
Valuation
Conclusion


Metropolis Labs: A New Leader Is in the Making

Thyrocare Technologies / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/thyrocare-technologies-ltd" target="_blank" data-smartkarma-citation="entities:22694:1" rel="noopener">Thyrocare Technologies (THYROCAR IN)</a> has come a long way in the Indian diagnostics industry. In many ways, it has been a pioneer of the space especially in certain niches like the Wellness segment and in leveraging hub and spoke model with the pioneering of test samples logistics through air transportation.</p>
<p>In its around 25 years of existence, it has charted new paths. The first couple of decades saw strong growth. Over the past 5 years, the growth profile has been decelerating. The space has become increasingly competitive and listed players like <a href="https://www.smartkarma.com/entities/dr-lal-pathlabs-ltd" target="_blank" data-smartkarma-citation="entities:26927:1" rel="noopener">Dr Lal PathLabs Ltd (DLPL IN)</a> and <a href="https://www.smartkarma.com/entities/metropolis-health-services-limited" target="_blank" data-smartkarma-citation="entities:27829:1" rel="noopener">Metropolis Health Services Limited (METROHL IN)</a> have been expanding aggressively. Each player has been penetrating into each other's geographies and product niches, limiting differentiation among them.</p>
<p>Thyrocare seems to be adjusting its strategy in response to competition. It has been on an expansion spree in terms of its labs presence and exclusive franchisees. After being fixated on achieving scale with minimal centralized labs, Thyrocare seems to be shifting to a more broader and deeper distribution strategy. It seems to have realized that providing the best quality service may not be achievable with just a handful of centralized labs.</p>
<p>While this shift in strategy seems prudent and bulls would argue that Thyrocare is taking the next leap, the bears would argue that Thyrocare is late to the game and in its desperation to catch up to the competition, it may lose its USP of being the lowest cost producer. Should you be bullish or bearish on Thyrocare? Read on to find out.</p>

Thyrocare Technologies (THYROCAR IN) has come a long way in the Indian diagnostics industry. In many ways, it has been a pioneer of the space especially in certain niches like the Wellness segment and in leveraging hub and spoke model with the pioneering of test samples logistics through air transportation.
In its around 25 years of existence, it has charted new paths. The first couple of decades saw strong growth. Over the past 5 years, the growth profile has been decelerating. The space has become increasingly competitive and listed players like Dr Lal PathLabs Ltd (DLPL IN) and Metropolis Health Services Limited (METROHL IN) have been expanding aggressively. Each player has been penetrating into each other's geographies and product niches, limiting differentiation among them.
Thyrocare seems to be adjusting its strategy in response to competition. It has been on an expansion spree in terms of its labs presence and exclusive franchisees. After being fixated on achieving scale with minimal centralized labs, Thyrocare seems to be shifting to a more broader and deeper distribution strategy. It seems to have realized that providing the best quality service may not be achievable with just a handful of centralized labs.
While this shift in strategy seems prudent and bulls would argue that Thyrocare is taking the next leap, the bears would argue that Thyrocare is late to the game and in its desperation to catch up to the competition, it may lose its USP of being the lowest cost producer. Should you be bullish or bearish on Thyrocare? Read on to find out.

Thyrocare: Taking the Next Leap or Late to the Game?

India

Metropolis Healthcare Limited provides medical and laboratory services. The Company offers pathology testing, imaging and nuclear medicine, clinical trails, and home health services. Metropolis Healthcare operates chains of diagnostic centers across India.

Metropolis Healthcare Limited (METROHL IN)

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Metropolis Healthcare Limited (METROHL IN)

Metropolis Healthcare Ltd Rs Company Update

Healthy expansion plan; major beneficiary of sector consolidation

Edelweiss

Metropolis Healthcare Ltd Rs Q4FY21 Result Update

Strong performance led by core business; Maintain BUY

Edelweiss

India: Stock Reclassification & Active Portfolio Management

There are a lot of segment changes expected in July when AMFI recategorizes stocks and mutual funds start to rebalance their portfolios. We...

Brian Freitas

Metropolis Labs: A New Leader Is in the Making

Metropolis has got its strategy right by focusing on quality and brand. It is also showing healthy growth aggression. With time, we would not be...

Ankit Agrawal, CFA

Thyrocare: Taking the Next Leap or Late to the Game?

Thyrocare seems to be following competition and shifting its strategy towards more decentralization vs its original strategy of heavy...

Ankit Agrawal, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)