Medplus Health Services - Growth Drivers Intact; Generics Scale-Up Key: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.In its FY24 annual report, Medplus Health Services Ltd. has highlighted key levers of growth such as-deeper penetration in its core markets with a focus on tier-II and beyond locations (~50% of stores in these markets) to optimise operational processes and inventory management; plans to add 600 plus stores in FY25;increasing private label share by capitalising its scale and expanding its product range; looking to scale-up its own branded generics under “Medplus” brand; GMV# was at Rs 7.47 billion; represented 10.70% of pharmacy sales on a gross merchandise value basis and 8.31% on net sales in FY24;expanding customer engagement by leveraging its local presence and diversified product offerings; and strengthening operating efficiencies in supply chain, infrastructure enhancement (automation of warehouses), and direct procurement approach from pharma manufacturers to help gross margin improvement. .We see a gradual margin improvement, led by a better mix with steady growth in mature stores (2+ years; ~9-10% margin), an increasing share of margin-accretive private-label and Medplus-brand generics, and an efficient supply chain. We have marginally tweaked our Ebitda for FY25/26E and retain target price to Rs 820 (17 times Q1 FY27E enterprise value/ Ebitda, which implies 28 times pre-INDAS EV/Ebitda). Reiterate Buy, given its strategic expansion plan and a focus on profitability improvement..Click on the attachment to read the full report:.Financials Sector Check - Assessing Fee Income Pools For Banks: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Medplus Health Services - Growth Drivers Intact; Generics Scale-Up Key: HDFC Securities

The brokerage reiterates Buy rating on the stock, given its strategic expansion plan and a focus on profitability improvement.

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Medplus Health Services - Growth Drivers Intact; Generics Scale-Up Key: HDFC Securities

The brokerage reiterates Buy rating on the stock, given its strategic expansion plan and a focus on profitability improvement.

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