MedPlus Health shares rise 3% on strong block deal; Q2 net profit doubles

Shares of MedPlus Health Services started strong on Monday, rising three per cent to hit Rs 726 following a significant block deal. Nearly 7 per cent of the company’s equity, equivalent to seventy-eight point nine lakh shares worth Rs 552 crore, exchanged hands at an average price of Rs 700 per share. By 10 am, the stock was trading at Rs 715 on the NSE, up 1.5 per cent.

Robust Q2 results drive stock rally

MedPlus has seen a 6 per cent rise in stock price over the past week, boosted by a strong performance in the July-September quarter. The company reported a twofold increase in consolidated net profit, reaching Rs 38.74 crore, compared to Rs 14.56 crore in the same period last year. This surge was primarily driven by strong demand for over-the-counter (OTC) medicines.

Revenue from operations rose 12 per cent year-on-year to Rs 157.6 crore, led by 11 per cent growth in the retail segment, which constitutes the bulk of MedPlus’s sales. Operational efficiency also improved, with the EBITDA margin rising to four point 6 per cent, up from 3.2 per cent in Q2 of the previous fiscal year.

MedPlus has outlined an aggressive expansion strategy, aiming to add six hundred new stores over the next three years, focusing on tier-2 cities. The company already operates over four thousand outlets, making it the second-largest pharmacy chain in India after Apollo Pharmacy, which has a network of over 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 store count to four thousand five hundred and fifty-two by the end of the quarter.