Medplus Health Services stock surges 4% after ICICI Prudential buys stake

Medplus Health Services shares rose 4 per cent at Rs 663.50 per share on the NSE in Tuesday’s intraday trade. The stock price movement was followed by stake buyout by ICICI Prudential Mutual Fund on Monday. 

The public promoter of Medplus Health Services sold its entire stake worth Rs 836 crore through open market transactions on Monday. 

Lavender Rose Investment, a Mauritius-based unit of private equity firm Warburg Pincus, offloaded 1.35 crore shares, or 11.35 per cent of the Hyderabad-based pharmacy retailer, at Rs 616.48 each, according to NSE bulk deal data. 

ICICI Prudential India Opportunities Fund acquired 1.81 million shares for Rs 111.6 crore, while ICICI Prudential Pharma Healthcare and Diagnostics bought a 1.43 per cent stake at Rs 616 per share. Further, the Government of Singapore purchased 1.15 million shares at Rs 616.2 each.

Medplus Health Services provides pathological laboratory testing, and is involved in the manufacturing, trading, and contract manufacturing of pharmaceutical, FMCG, and beauty products. It also renders management services to group companies and holds investments in subsidiary companies.

The company has six direct subsidiaries and five step-down subsidiaries. For April-June quarter of financial year 2024-25 (Q1FY25), the company's total income rose by 15.93 per cent year-on-year to Rs 1,488.83 crore. At the same time, operating profit or earnings before interest, tax, depreciation and amortisation (Ebitda) surged 78.21 per cent to Rs 33.73 crore on a Y-o-Y basis. 

Profit after tax soared by 279.37 per cent Y-o-Y  to Rs 14.36 crore. Operating margin improved by 53.73 per cent Y-o-Y to 2.27 per cent, while net profit margin rose 227.32 per cent Y-o-Y  to 0.96 per cent.

At 11:22 AM the shares of the company were trading 3.93 per cent higher at Rs 662.50 per share on NSE. By comparison the NSE Nifty50 was up 0.20 per cent at 25,061 levels.