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    This online pharma retailer stock has lost over 30% this year so far but Nomura sees 27% upside

    This online pharma retailer stock has lost over 30% this year so far but Nomura sees 27% upside

    This online pharma retailer stock has lost over 30% this year so far but Nomura sees 27% upside
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    By CNBCTV18.com  IST (Published)

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    Medplus share price fell more than 7 percent from the day's high, after an initial bout of buying in trade on Monday. Japan-based global brokerage Nomura sees 27 percent upside in the stock price of the online pharmacy retailer.

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    Buy / Sell Medplus Health share

    Medplus Health shares fell in trade on Wednesday, falling more than 7 percent from the day's high and continuing its recent downtrend despite global brokerage firm Nomura seeing strong upside in the stock price of the online pharmacy retailer. The stock touched an intraday high of Rs 772, jumping 4.96 percent from the previous close on the BSE but fell more than 7 percent to the day's low of Rs 720.
    At 1.30 pm, Medplus share price was trading at Rs 724.50, a decline of 1.5 percent from the previous close on the BSE.
    Nomura has initiated coverage of the pharmacy retailer Medplus with a buy rating at a target price of Rs 925 per share, suggesting an upside of 27 percent from the close on Friday at Rs 735.
    Medplus stocks have fallen 2.7 percent in the last two days and corrected over 30 percent so far this year. Nomura believes that strong results by Medplus are helping it with expanding its organised pharma retail. The brokerage firm expects the revenue growth for Medplus to accelerate and margins to expand from the current low base.
    The global brokerage firm forecasts the revenue of CAGAR 26.9 percent over the financial year 2022-2025 The margin is expected to expand to 3.25 percent by FY25, said Nomura in a note.
    The financials
    In its annual report for 2021-2022 released on September 10, Medplus said that the profit after tax (PAT) for the financial year 2022 grew by 50.1 percent and stood at Rs 94 crore compared to Rs 63 crore in the financial year 2021.
    The revenue from operations grew 23.1 percent and stood at Rs 3,779 crores compared to the previous year’s revenue of Rs 3069 crore.
    The EBITDA grew by 27.5 percent and stood at Rs 3,037 crore for the financial year 2022.
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