Medplus Health Services Ltd (MHSL) is a prominent player in India’s retail pharmacy segment, with a vast network of 4,552 stores across 12 states. The company has a strong presence in southern India, accounting for 70% of its outlets. MHSL has been actively expanding into tier 2 and smaller cities, tapping into high-growth areas.
The revenue for MHSL is primarily derived from pharmacy operations, with some contribution from ancillary segments like diagnostics and optical. With its extensive network and mature store base, MHSL is poised for significant revenue growth in the coming years.
One key driver of growth for MHSL is the expected increase in revenue per store, which is projected to grow at a CAGR of 17% over the next few years. This growth is supported by improving EBITDA margins, driven by the higher share of private-label products and profitability from matured stores.
Overall, MHSL’s strong market position, aggressive expansion strategy, and focus on improving profitability make it an attractive investment opportunity. With a target price of ₹1,340, investors may find value in considering MHSL as a potential addition to their portfolio.
