MedPlus Health shares rise 3% on strong block deal; Double profit for Q2
Shares of MedPlus Health Services got off to a strong start on Monday, rising 3 percent to Rs 726 following a key block deal. About 7 percent of the company’s equity, equivalent to seventy-eight lakh shares worth Rs 552 crore, exchanged hands at an estimated price of Rs 700 per share. At 10 am, the stock was trading at Rs 715 on the NSE, up one point by five percent.
Strong Q2 results drive stock rally
MedPlus saw a 6 percent rise in its stock price last week, boosted by strong performance in the July-September quarter. The company reported a two-fold increase in consolidated profit, reaching Rs 38.74 crore, compared to Rs 14.56 crore in the same period last year. This growth is primarily due to strong demand for over-the-counter (OTC) medications.
Income from operations rose 12 percent year-on-year to Rs 157.6 crore, led by 11 percent growth in the retail segment, which comprises a major portion of MedPlus sales. Operating efficiency also improved, as EBITDA margin rose to 4.6 percent, from 3.2 percent in Q2 of the previous fiscal year.
MedPlus has revealed an aggressive expansion strategy, which aims to add six hundred new stores over the next three years, focusing on second-tier cities. The company already operates more than four thousand stores, making it the second largest pharmacy in India after Apollo Pharmacy, which has a network of more than six thousand stores.
During the July-September quarter, MedPlus added one hundred and eight new stores, including seventy-one in tier-2 and smaller markets, bringing its total number of stores to four thousand five hundred and fifty-two at the end of the quarter.
