Its net profit rose to Rs 26.58 crore for the quarter ended March 31, from Rs 11.73 crore a year ago.
The company’s consolidated revenue from operations rose 30%, thriving on the back of improved accessibility among consumers – the company sells medicines online as well as through its retail outlets across the country.
Its revenue from retail business, which accounts for almost all pf total revenue, surged about 29% to Rs 1,241 crore, on the back of new launches and scaled-up production of existing products.
Medplus Health said its gross store additions during the quarter stood at 284 stores.
At 9.59 am, the stock was trading 11.5% higher at Rs 769.1 on BSE. On a year-to-date basis, the stock has surged 24%. However, it has declined by 16% in the last one year.
Domestic brokerage Axis Securities has a Buy call on Medplus Health Services with a target price of Rs 820, which indicates an upside potential of 7% from the current market price.”EBITDA at Rs 816 million beat our/consensus estimate by 15%/13% led by strong sales growth (30% YoY), 4% above our estimate. This was coupled with higher gross margin (+127 bps YoY) led by an increase in private label sales and better mix,” Axis Securities said.
According to Trendlyne data, the average target price of the stock is Rs 808, which shows an upside of 5% from the current market prices. The consensus recommendation from 6 analysts for the stock is a Buy.
Technically, the day RSI (14) is at 43.4. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at -1, which is below its Signal and Center Line, this is a strong bearish indicator.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)