MedPlus Health Services, the second largest pharmacy retailer in India, put on an impressive performance as the stock surged 40.81 percent on debut on December 23, thanks to positive momentum in the secondary market and its strong initial public offering (IPO) subscription figures.
The stock rallied as much as 43.6 percent to touch an intraday high of Rs 1,143.10 after opening at the day’s low of Rs 1,015, which was still 27.51 percent up from its offer price. It ended the day at Rs 1,120.85 on the BSE, up 40.81 percent over the issue price of Rs 796 a share.
On the National Stock Exchange (NSE), the stock climbed 40.85 percent to close at Rs 1,121.45 after hitting the day’s high of Rs 1,143.90 and a low of Rs 1,040.
The MedPlus share saw 1.84 crore trades on the NSE, and 11.99 lakh on the BSE. The BSE Sensex and Nifty continued to run up for a third straight session, rising 0.7 percent each on December 23.
“Long-term investors can wait for lower levels to buy, as Medplus is the second-largest pharmacy retailer in India, offering a good value proposition to its customer in terms of discount, a wide range of product and fast delivery,” said Yash Gupta, Equity Research Analyst at Angel One. “We believe that the company’s omnichannel platform will help deliver strong growth in future.”
Santosh Meena, Head of Research at Swastika Investmart, said long-term investors should hold the stock.
“It might turn into a wealth creator in the next two to three years. We believe the growth opportunities from the industry will justify the company’s valuation in the long run, even if it appeared to be expensive at first glance,” Meena said.
Incorporated in 2006, MedPlus is the second largest pharmacy retailer in India in terms of revenue from operations for FY21, and number of stores as of March 2021.
Click Here To Know All IPO Related News
The company has grown its network of 48 stores in Hyderabad at the time it started business to over 2,326 stores in 261 cities as of September 2021 across Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, West Bengal, Maharashtra and Odisha. It operates more than 95 percent of its stores itself and the rest through a franchisee network.
MedPlus mopped up Rs 1,398.30 crore through its public issue at a price of Rs 796 a share.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.