Krsnaa Diagnostics, Metropolis hit 52-week; fall up to 14% in one month

In the past one year, these stocks have slipped between 48 per cent and 51 per cent, as compared to 3 per cent gain in the Sensex

Krsnaa Diagnostics, Thyrocare, Metropolis hit 52-week lows
SI Reporter Mumbai
3 min read Last Updated : Aug 29 2022 | 12:16 PM IST
Shares of healthcare service providers were under pressure on Monday with Thyrocare Technologies, Krsnaa Diagnostics, and Metropolis Healthcare hitting their respective 52-week lows on the BSE iin today's intra-day trade amid weak earnings.

In the past three months, these stocks have fallen in the range of 10 per cent to 15 per cent, as compared to 6 per cent rise in the S&P BSE Sensex. Moreover, over the past six months, they have fallen up to 29 per cent, as against 3 per cent gain in the benchmark index. In the past one year, these stocks have slipped between 48 per cent and 51 per cent, as compared to 3 per cent gain in the Sensex.

Among individual stocks, Krsnaa Diagnostics slipped 5 per cent to Rs 455 in the intra-day trade today. In the past one month, it has tanked 18 per cent after the company's profit and margins declined year-on-year (YoY) and sequentially for the quarter ended June 2022 (Q1FY23).

The company said profitability margins were impacted compared to previous quarter due to additional costs incurred for onboarding team to operate and run the newly launched centres. The margins are expected to improve in the upcoming quarters with the maturity of these centres, Krsnaa Diagnostics had said post results.

Meanwhile, the management of Metropolis Healthcare had said that Covid and Covid allied revenue witnessed a sharp fall as expected in line with the drop in number of Covid cases. "Going ahead, we expect the non‐Covid revenue to revert back to the sustainable growth rates recorded in pre‐Covid days,” it said. The stock, too, declined 5 per cent to Rs 1,352 on the BSE in the intra-day trade today. In the past one month, it has tumbled14 per cent.

Accordig to industry players, the sector is witnessing increased interest from new players including large Business groups, hospital chains, pharma companies, HealthTech platforms, etc. The increased competition is causing growth and pricing pressures which could bring profitability under stress.

"Advancing technology may result in the creation of more cost-effective technologies or non-invasive diagnostic healthcare tests that are more accessible or even less expensive than the tests already available. The development of such technology, as well as its subsequent usage by existing and prospective patients, may result in a decrease in demand for the Organization's services," Metropolis said in its FY22 annual report.

In the financial year 2021-22, Metropolis strengthened its operations by adding 16 labs and 506 network centres, as a part of its expansion plan of adding 90 labs and 1,800 network centres by FY24. "With the recent acquisition of Hitech Diagnostic Centre, the company will strengthen its position its leadership position in South India market. This acquisition will further enable us to become the 2nd largest Diagnostics Company in India and the largest brand in South India and West India," the company said in its annual report.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Buzzing stocksDiagnosticsMetropolis HealthcareKrsnaa DiagnosticsMarkets

Next Story