Medplus Health dips below issue price, hits new low; stock down 16% in 1 wk

With the recent decline in the stock price of the company, MHSL is trading 7 per cent lower from its issue price of Rs 796 per share

Medplus Health slips 16% in one week, hits new low; falls below issue price
SI Reporter Mumbai
2 min read Last Updated : Jun 10 2022 | 11:02 AM IST
Shares of Medplus Health Services (MHSL) hit a new low of Rs 737.15, down 4 per cent on the BSE in Friday’s intra-day trade. The stock of pharmacy retail company, which has fallen below its issue price of Rs 796 per share, was trading lower for the sixth straight day, down 16 per cent during the period.

With the recent decline in the stock price of the company, MHSL was trading 7 per cent lower from its issue price. It has tanked 45 per cent from its 52-week high level of Rs 1,343 touched on January 20, 2022. The company had made a stock market debut on December 23, 2021.

MHSL offers a wide range of products, including pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers.

For January-March quarter (Q4FY22), MHSL reported 36.8 per cent year on year (YoY) decline in profit after tax (PAT) at Rs 11.43 crore as against Rs 18.08 crore in Q4FY21. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin contracted 120 bps YoY and 60 bps sequentially to 6.8 per cent during the quarter. Revenue, however, grew 19.9 per cent to Rs 966 crore from Rs 806 crore in the year-ago quarter.

MHSL said, currently, 27 per cent of the company’s stores are less than a year old. They, the company said, are expected to contribute to profit as they mature. The management also expects to maintain pace of new store openings.

That said, the potential aggressive discounting by peers is key risk for the company.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Medplus Health ServicesBuzzing stocksMarkets

Next Story