Medplus Health Shares Surge for Fourth Straight Session Following ₹552-Crore Block Deal

Medplus Health Services kicked off its stock market journey with a bang, rising 3% to ₹726. About 7% of the company’s shares—78.9 lakh in total, worth ₹552 crore—changed hands in a block deal at an average price of ₹700 per share.

By 10 a.m., Medplus Health shares price was trading at ₹715 on the NSE, showing a smaller but steady 1.5% gain. Over the last week, Medplus shares have been on the rise, rallying 6%.

In the latest quarter, the company more than doubled its net profit, hitting ₹38.74 crore compared to ₹14.56 crore last year. What’s behind this jump? Strong demand for over-the-counter (OTC) medicines played a big role. Revenue from operations climbed 12% year-on-year to ₹157.6 crore, with an 11% boost from the retail segment, which makes up most of Medplus’s sales. Operational efficiency improved too, with EBITDA margins increasing to 4.6% this quarter, up from 3.2% a year ago.

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Medplus has ambitious expansion plans, focusing on tier-2 cities. It’s aiming to open 600 new stores over the next three years. With over 4,000 outlets already in operation, the company is India’s second-largest pharmacy chain, following Apollo Pharmacy’s 6,000 stores. In the July-September quarter alone, Medplus added 108 new outlets—71 of them in smaller cities—bringing its total count to 4,552 by the end of the period.

Still, the stock has been a mixed bag lately. While it delivered a modest 2.09% return over the past week, it’s down 2.95% in the last six months and has dropped 8.94% year-to-date.

At the moment, Medplus has a market cap of ₹8,166.91 crore. Its stock has swung between a 52-week high of ₹849 and a low of ₹598.6, showing some significant ups and downs.

As of November 14, 2024, analysts seem pretty optimistic about Medplus’s future. Of those tracking the stock, two have issued a “Buy” rating, while four have gone with a “Strong Buy,” signaling confidence in the company’s growth plans and market position.