Shares of Medplus Health Services were off to a robust start on the bourses after rising 3 percent to Rs 726 as almost 7 percent equity or 78.9 lakh shares worth Rs 552 crore changed hands at an average price of Rs 700 per share via a block deal.
At about 10 am, shares of the company were trading at Rs 715, higher by 1.5 percent on the NSE. Medplus Health Services' stock price has picked up momentum in the past week after rallying 6 percent.
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In the second quarter, the company reported a twofold rise in net profit. Driven by strong demand for over-the-counter (OTC) medicines, the company reported a consolidated net profit of Rs 38.74 crore for the quarter gone by, up from Rs 14.56 crore a year ago.
MedPlus Health reported a 12 percent year-on-year rise in revenue from operations, reaching Rs 157.6 crore, driven by approximately 11 percent growth in its retail segment, which accounts for nearly all its sales. The company's operational efficiency also improved, with the EBITDA margin climbing to 4.6 percent in Q2, compared to 3.2 percent in the same quarter last year.
The pharmacy chain plans to expand aggressively into tier-2 cities, targeting 600 new stores over the next three years. With over 4,000 outlets already in operation, MedPlus is the second-largest chain in India, following Apollo Pharmacy's network of over 6,000 stores.
During the July-September quarter, MedPlus added 108 stores, including 71 in tier-2 and smaller markets, bringing its total store count to 4,552 by the end of the period.
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