Goal: ₹1,340
CMP: ₹811.20
Medplus Well being Providers Ltd (MHSL) is the second-largest participant in India’s retail pharmacy section, working a sturdy community of 4,552 shops as of H1FY25 and holding an organised market share exceeding 10 per cent. Its retailer community spans throughout 12 States, with a powerful focus in southern India, which accounts for about 70 per cent of its shops.
MHSL has been actively increasing its presence into tier 2 and smaller cities inside its core markets, tapping into high-growth potential areas. Within the current years, MHSL has accelerated the shop opening course of and has been aggressive on that entrance. MHSL generates round 99 per cent of its income from pharmacy operations, the remaining producing from different ancillary segments like diagnostic and optical.
Contemplating MHSL’s intensive presence because the second-largest retail pharmacy chain in India and its maturing retailer community, we anticipate vital progress in income per retailer, which might result in a progress of 17 per cent CAGR over FY24-27E within the total income. Enhancements in EBITDA margins are prone to be supported by an rising share of private-label merchandise and a better proportion of matured shops, which generally ship higher profitability.
