MedPlus Health Services Limited

Healthcare — Pharmaceutical Retailers · NSE

₹615.00+₹2.20 (+0.36%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of MedPlus Health Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MedPlus Health Services Limited engages in the retail trading of medicines and general items in India.

IndustryPharmaceutical Retailers

SectorHealthcare

Employees28,872

Annual revenue₹6,835 Cr

How does it make money?

Turns over ₹6,835 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 28,872 employees supports ₹23.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 14.0% and earnings to grow about 36.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.0%

Est. earnings growth+36.7%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +51% while net margin moved +192% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+51%

Margin effect+192%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

66/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.1x

3Y Median

132.7x

40 monthly readings · mean 119.1x · range 33.5x–194.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 74% below its 3y median of 132.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

132.7x median over 40 months · -74%

vs. sector peers

Fair

33.3x median of 4 peers · +5%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.8x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.8% to 9.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 3.3% to 11.1%.
Return on capital is rising
ROCE has improved from 5.6% to 12.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 58% over 3 years, from ₹900 Cr to ₹1,424 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 245% against revenue up 51% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.8% to 9.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 74% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 245% against revenue up 51%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.7% CAGR
Latest reported year was 21.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹373 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹7,385 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.54

Profitable

Profitable on a per-share basis

ROE

11.1%

Moderate

Moderate capital efficiency

ROCE

12.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

21.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-21.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹373 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

27.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.9%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

642.3 / 659.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,529 Cr	₹5,574 Cr	₹6,087 Cr	₹6,835 Cr	+14.7%
EBITDA	₹308 Cr	₹390 Cr	₹529 Cr	₹675 Cr	+29.8%
EBITDA Margin	6.8%	7.0%	8.7%	9.9%	—
PAT (Net Profit)	₹50 Cr	₹65 Cr	₹150 Cr	₹220 Cr	+64.0%
EPS	₹4.17	₹5.45	₹12.52	₹18.29	+63.7%
ROE	3.3%	4.1%	8.6%	11.1%	—
ROCE	5.6%	6.9%	10.3%	12.2%	—
Total Debt	₹900 Cr	₹1,010 Cr	₹1,120 Cr	₹1,424 Cr	+16.5%
Free Cash Flow	-₹79 Cr	₹59 Cr	₹481 Cr	₹373 Cr	—

🟢 Revenue has grown at 14.7% a year over 3 years.

🟢 EBITDA has grown at 29.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.8% to 9.9% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 64.0% a year over 3 years.

🟢 EPS has grown at 63.7% a year over 3 years.

🟢 ROE has risen from 3.3% to 11.1% over 3 years (+7.8 pts).

🟢 ROCE has risen from 5.6% to 12.2% over 3 years (+6.6 pts).

🔴 Total Debt has grown at 16.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹79 Cr to ₹373 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,933 Cr

Total Liabilities

₹1,958 Cr

Cash & Equivalents

₹198 Cr

Operating Cash Flow

₹496 Cr

Capex

-₹123 Cr

Shareholding (proxy)

Institutional Holding

39.2%

Insider Holding

32.3%

Analyst Consensus

Recommendations

7 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹993.14

+61.5% vs CMP

Target Range

₹780 – ₹1,217

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

3 mixed1 negative2 general

Medplus Health Services (MEDPLUS) Share Price hits fresh 52-week low at Rs 617.15

Univest, 13 Oct

MedPlus Health Services (NSEI:MEDPLUS) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

MedPlus shares tumble 18% after Q1 profit sinks 22%; should you buy?

Business Standard, 22 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

MedPlus Health shares tumble 16% after Q1 profit falls 21% YoY. Should you buy, sell or hold?

The Economic Times, 22 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

MedPlus Health shares fall up to 18%, slip below IPO price, dragged by these factors

CNBC TV18, 22 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Medplus Health Services Ltd. 52 Week Low Streak Deepens

Univest, 14 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑