Shares of MedPlus Health were listed today at a premium of 27.51 percent to the IPO price. There has been an increase of 11.6 percent in comparison to the listing price.
MedPlus Health Listing: MedPlus Health Services shares had a great start today. Its shares reached a new high of Rs 1,133 on Thursday. Shares of the pharmacy retailer were listed today at a premium of 27.51 per cent over the IPO price. Now it has increased by 11.6 percent against the listing price i.e. Rs 1,015. At the same time, compared to the IPO price, its shares have gained 42.3 percent. Rajnath Yadav, Research Analyst, Choice Broking, advises short-term investors to exit, while he advises long-term investors to stay invested.
Great listing of Medplus Health shares, up 27 percent in early trade
This is the opinion of experts for investors
- Analysts at research and brokerage firm Angel One suggested short-term investors to book profits in MedPlus Health Services, as the company was trading at 37x EV/EBITDA on H1FY2022 basis, in line with listed peers.
- Yash Gupta, Equity Research Analyst, Angel One, said, “Long-term investors can wait to buy at lower levels, as MedPlus is the second largest pharmacy retailer in India. The company offers its customers a good value proposition in terms of discounts, a wide range of products and fast delivery.” Gupta also believes that the company’s omnichannel platform will help deliver strong growth in the future. “So we recommend short term investors to book profits and long term investors can wait to buy at lower levels,” he said.
- The IPO of pharmacy retail chain MedPlus Health Services was subscribed 52.59 times. Santosh Meena, Research Head, Swastika Investmart has advised long term investors to hold the stock. He says that it can give a good return in the next 2-3 years.
- Meena suggests short term investors to keep a stop loss of Rs 875. “We are confident that it will benefit investors in the long run, even if it looks expensive at first glance,” Meena said.
- Hyderabad-based pharmacy retailer MedPlus Health sells medicines, vitamins, medical devices and test kits. Apart from this, it also sells toiletries, baby care products, soaps, detergents and sanitizers.
- Ravi Singh, Head of Research, ShareIndia Securities, advised investors to book 50 per cent of the positions at the current price and hold the remaining shares with a stop loss of Rs 1000.
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Company’s business status
- MedPlus was founded in the year 2006 by Gangadi Madhukar Reddy. He is the Managing Director and Chief Executive Officer of the company.
- Hyderabad-based pharmacy retailer MedPlus Health sells medicines, vitamins, medical devices and test kits. Apart from this, it also sells toiletries, baby care products, soaps, detergents and sanitizers.
- It is the country’s first omni-channel retailer platform pharmacy retailer and is continuously expanding its retail network.
- It is the second largest pharmacy retail network in the country with a network of 2165 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra as of March 2021.
- Talking about the financial position of the company, it had a net profit (Profit After Tax) of Rs 11.92 crore in the financial year 2019, while in the next financial year, Medplus Health made a profit of only Rs 1.79 crore. However, the very next year, the company’s business situation improved tremendously and earned a net profit of Rs 63.11 crore.
(Article: Surbhi Jain)
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