Medplus Healthcare Services saw its share price surge by 7 per cent on Wednesday, with an intraday high of Rs 724 per share on the Bombay Stock Exchange (BSE). The rise followed the release of the company’s impressive Q2FY25 results, showing its net profit more than doubling to Rs 38.74 crore. This substantial increase has rekindled investor interest, pushing up the stock despite broader market pressures.
By 11:48 AM, Medplus shares were trading up by 3.52 per cent at Rs 699.4 per share on the BSE. In contrast, the BSE Sensex was down by 0.64 per cent, standing at 78,170.49. At this share price, Medplus had a market capitalisation of Rs 8,361.13 crore. Notably, the stock’s 52-week high is Rs 724 per share, while its low stands at Rs 693.05 per share, underscoring today’s performance as a notable peak.
The boost comes on the heels of the company’s second-quarter earnings report, released post-market hours on Tuesday, which revealed a sharp increase in quarterly profit. For the quarter ending 30th September, Medplus posted a net profit of Rs 38.74 crore, up from Rs 14.56 crore in the same quarter last year. This marks a year-on-year increase of more than 1.5 times.
Revenue from operations saw a solid increase as well, rising by 12 per cent to Rs 1,576 crore from Rs 1,408.6 crore a year earlier. Meanwhile, Medplus recorded an Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of Rs 124 crore, up from Rs 85 crore in the previous year, a 46 per cent rise. EBITDA margins for the quarter improved to 7.9 per cent, up from 6 per cent last year, highlighting the company’s improved profitability and operational efficiency. Medplus, however, did not provide a detailed sales breakdown between its over-the-counter and prescription medicines, both core to its retail business.
In the broader pharmaceutical sector, other companies have also noted a boost in domestic revenue due to the strong demand for over-the-counter (OTC) medicines. Mankind Pharma and Cipla both reported higher domestic sales driven by a surge in demand for their OTC products, as detailed in their respective Q2 earnings.
Medplus has been actively pursuing expansion plans as part of its growth strategy. In September, the company announced its intentions to expand its reach into India’s tier-2 cities by establishing 600 new stores over the next three years. This ambitious move is expected to strengthen Medplus’s presence in under-served areas, tapping into new markets and increasing its customer base.
More Read
Founded with a mission to provide affordable and high-quality healthcare, Medplus has established itself as one of India’s most prominent healthcare service providers, operating a vast network of pharmacies across the country. Medplus outlets offer a wide range of pharmaceutical products, including prescription and OTC medicines, health supplements, and medical devices. Additionally, its online platform enables customers to conveniently order medicines, book diagnostic tests, and access other health services from home.
Despite today’s rally, Medplus shares have faced challenges in the past year, having declined by 17 per cent. This contrasts with the BSE Sensex’s strong performance, which has climbed 21 per cent in the same period. Medplus’s performance has been impacted by various factors, including competitive pressures within the retail pharmacy sector and broader market trends.
Nonetheless, with its focus on expanding into new markets and a steady rise in revenue, Medplus has reaffirmed its commitment to becoming a leading healthcare player. As India’s healthcare demands continue to grow, particularly in semi-urban and rural areas, Medplus is positioning itself to meet these needs by expanding its retail and online footprint.
Looking ahead, the company’s growth trajectory appears optimistic, especially given the government’s ongoing efforts to improve healthcare accessibility in tier-2 and tier-3 cities. If Medplus can continue to leverage its retail and online platforms to serve these communities effectively, it could see sustained growth in both market share and investor confidence.
