Medplus Health shares rise 4th session after ₹552-crore deal

Medplus Health Services marked another impressive session on the bourses, with its shares rising 3% to ₹726, propelled by a ₹552-crore block deal. The deal saw 7% equity, or approximately 78.9 lakh shares, change hands at an average price of ₹700 per share. By 10 AM, the stock was trading at ₹715 on the NSE, up by 1.5%. The company's performance aligns with its recent streak of gains, including a 6% rally in the past week.

For share market investment enthusiasts, Medplus Health's recent movements underline the potential for strategic gains. The stock's upward trajectory has been supported by its robust financial results and expansion plans.

Financial performance fuels investor interest

Medplus Health reported a twofold increase in its Q2 net profit, reaching ₹38.74 crore, compared to ₹14.56 crore in the same period last year. Revenue from operations climbed 12% year-on-year to ₹157.6 crore, bolstered by 11% growth in the retail segment. Enhanced operational efficiency was evident as the EBITDA margin improved to 4.6%, up from 3.2% in the previous year.

This strong performance reflects the rising demand for over-the-counter (OTC) medicines, a key driver of the company's growth. Such metrics make Medplus Health a promising consideration for those exploring share market investment opportunities.

Expansion plans boost confidence

Medplus Health has set ambitious plans to expand into tier-2 and smaller cities. By the end of the July-September quarter, the pharmacy chain added 108 new outlets, bringing its total count to 4,552 stores. Notably, 71 of these stores were in tier-2 markets. The company aims to establish 600 additional outlets over the next three years, reinforcing its position as India's second-largest pharmacy chain.

For investors, such growth-oriented strategies signify long-term value, making Medplus Health a compelling prospect in share market investment portfolios.

Key takeaways

• Medplus Health shares surged 3% to ₹726 after a ₹552-crore block deal, continuing their rally for a fourth session.
• Strong Q2 financials, with a twofold rise in net profit and 12% revenue growth, drove investor optimism.
• Expansion into tier-2 cities and plans for 600 new stores underscores the company's growth potential.

Exploring such dynamic stocks can enhance a well-rounded share market investment approach.