ICICI Securities sets Rs 675 target for Metropolis Healthcare on tier-2/3 city expansion

ICICI Securities retained a buy rating on Metropolis Healthcare with a revised target price of Rs 675, citing largely in-line Q1 FY27 results and margin outlook. Organic revenue grew 16.6% in Q1, aided by 10% higher patient volumes and improved test mix. The brokerage expects margins near 25% within three-four years as Core Diagnostics integration nears completion, and kept FY27 revenue growth guidance of 14-15%. Management plans to add 400–500 centres in tier-2/3 cities during FY27 and may pursue acquisitions. ICICI Securities raised FY28 EPS estimates by 1%, lifting its discounted cash flow target from Rs 640.