The shares of Medplus Health Services climbed over 12 percent in the early trade on May 26, as investors lapped up the stock after the healthcare services company posted a good set of numbers for the March quarter of the financial year 2022-23.
Medplus Health reported an over two-fold rise in net profit in the January-March period at Rs 26.5 crore, up from Rs 11.7 crore in the year-ago quarter.
The topline also grew 29.7 percent on-year to Rs 1,253 crore from Rs 966 crore on the back of rapid store additions. The strong topline beat also aided the growth in net profit.
The company said that 65 percent of its stores opened in the first half of FY23 managed to break-even just within six months of operations, giving a boost to operational performance. EBITDA margin increased to 6.5 percent in Q4, up from 5.4 percent in the same quarter of the previous fiscal.
At 9.58 am, Medplus Health Services was trading 11.5 percent higher at Rs 768.90 on the National Stock Exchange. Trading volumes also shot up as seven lakh shares changed hands, significantly higher than the one-month daily traded average of 54,000 shares.
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Brokerage firm Investec lauded the company's robust quarterly numbers, as they surpassed consensus estimates. The broking firm was also impressed by the improvement in gross and EBITDA margin during the quarter, despite the addition of 284 stores.
Investec retained its “buy” call on the stock, with a price target of Rs 860. The target price reflects an upside potential of nearly 25 percent from the closing price on May 25.
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