Shares of pharmacy retailer MedPlus Health Services hit new lows in Friday’s trading session as the stock fell more than 2% 737 each on BSE. Shares of MedPlus, which made its stock market debut in December last year, were trading below its IPO issue price 796 per.
For the quarter ended March 2022, MedPlus reported a 37% decline in its net profit 11 crore as against 18 crore year-on-year (YoY). Meanwhile, the company’s revenue grew 20% from 966 crores 806 crore in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin declined by 120 to 6.8% during the fourth quarter of fiscal year 2012.
Medplus Health Founded in 2006 by Gangadi Madhukar Reddy, who is the Managing Director and Chief Executive Officer (CEO) of the company. The Hyderabad based pharmacy retailer offers a wide range of products, which includes household and personal care items such as pharmaceutical and wellness products and FMCG products.
Initial Public Offering (IPO) MedPlus Health was subscribed 52.59 times. There was a new issue in the public issue till now. 600 crores and up to Offer for Sale (OFS) 798.3 crores. The company aimed to utilize the proceeds of the new issue to finance the working capital requirements of Optival, a subsidiary of the company.
Shares of MedPlus are down more than 36% since listing in December 2022, while the newly listed stock is down more than 28% so far in 2022 (YTD).
Brokerage Sharekhan has given a hold rating on the shares of Medplus with a target price of As of 1,033 the pharmacy retailer is focusing on increasing its reach and penetration and hence has announced to set up 1000 new stores in FY23E and the company aims to maintain the new store momentum.
The brokerage said in a recent note, “MedPlus seeks to capitalize on the shift from unorganized to organized retail of pharmaceutical products in India, taking advantage of the low base of organized pharmacy retail penetration and the growing penetration of mobile and internet usage in India. Is.”