Shares of Medplus Health Services slipped 3 percent in opening trade on August 26 after a large deal worth Rs 950 crore took place on the exchanges. As much as 1.50 crore shares, representing a 12.8 percent stake of the company changed hands at a floor price of Rs 616 apiece.
Moneycontrol could not immediately verify the buyers and sellers in the transaction.
Following the deal, shares of Medplus Health Services slipped to the day's low of Rs 616 on the NSE. The large deal also triggered a spike in volumes in the counter as two crore shares changed hands on the bourses, a meteoric rise from the one month daily traded average of two lakh shares.
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Back in early July, brokerage firm Nomura had slashed its price target for Medplus by over 5 percent to Rs 931, on the back of the stock's poor performance since its market debut in December 2021.
The stock has also remained under pressure in recent times as it slumped over 20 percent in just the past month.
MedPlus's operating EBITDA margin eroded 150 basis points between FY22 and FY24, largely due to aggressive expansion of new stores, entry into the diagnostics sector, and the launch of low-cost generics. Although revenue from the new stores has been in line with expectations, the diagnostics business is currently hovering around break-even, with expansion plans currently focused on Hyderabad.
Despite recent challenges, Nomura remains optimistic about MedPlus's prospects, maintaining its 'buy' rating on the stock. The firm believes MedPlus is well-positioned to capitalize on the ongoing shift in the pharmacy sector from unorganised to organised segments, along with the increasing demand for low-cost generics.
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