Medplus Health Services shares zoom 20% to hit upper circuit after strong Q4 numbers; more upside possible?

Shares of Medplus Health Services Ltd hit their 20 per cent upper circuit of Rs 827.80 in Friday's trade after the omnichannel retail pharmacy reported a two-fold surge in fourth-quarter (Q4) profit of the financial year 2022-23 (FY23), backed by strong retail sales. The stock surged 20 per cent today to hit a day high of Rs 827.80 over its previous close of Rs 689.85. Around 1.74 lakh shares changed hands on BSE, which was more than 31 times higher than the two-week average volume of 5,610 shares. Turnover on the counter stood at Rs 14.23 crore, commanding a market capitalisation (m-cap) of Rs 9,859.42 crore.

At today's high price of Rs 827.80, the stock traded 45.23 per cent higher from its 52-week low of Rs 570, a level seen on November 10 last year. Yet, the scrip has dropped 10.02 per cent from its one-year high of Rs 920, hit on May 27, 2022.

Medplus said its consolidated net profit jumped 126.60 per cent to Rs 26.58 crore for the quarter that ended March 31, from Rs 11.73 crore a year ago. The company's consolidated revenue from operations rose 30 per cent. Medplus sells medicines online as well as through its retail outlets across the country.

Revenue from its retail business jumped about 29 per cent to Rs 1,241 crore. On the other hand, the company's expenses also grew 29 per cent during the March 2023 quarter.

Technical analysts largely remained 'bullish' on the counter.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The stock saw a massive gap up. So going forward, we need a close above Rs 800 levels for further upside momentum. One can buy in the range of Rs 800-805 if it sustains above 800. The target would be Rs 900 and a stop loss would be placed at Rs 760."

AR Ramachandran from Tips2trades said, "MedPlus Health Services looks bullish and now faces strong resistance at Rs 780 on the daily charts. As long as daily support of Rs 730 is not broken, the trend could remain bullish."

Meanwhile, Indian equity benchmarks traded higher in late deals today, led by strong buying across all sectors.