Medplus Health Services
Organised pharmacy retail
- Last close
- ₹654.00
- 29 Sept 2026 · reference
- 1D · 1M
- +0.2% · −3.3%
- price-only
- Weight
- 0.8%
- 31 Jul 2026 · Aug rank 27
- Thesis review
- 8 Sep 2026
- Why We Own, p43
Approved description
MedPlus is India's second-largest organised pharmacy chain with 5,476 stores (2.9 mn sq ft) across 14+ states as of Jun-2026, behind Apollo Pharmacy; India has ~1 mn pharmacies of which only ~22,000 are organised-chain outlets (Ken Research, 2025). FY26 revenue Rs 6,892 cr, +12%. Private label is ~20% of revenue (pharma 10.7%, non-pharma 9.3%); ~12% of stores are franchised; a small diagnostics business (Rs 37 cr/qtr) is being kept in maintenance mode.
- 01Structural runway: organised chains are ~2% of India's ~1 mn pharmacies; pharmacy retail market USD 30.1 bn (2025) growing 9.8% CAGR to USD 52.8 bn by 2031 (Ken Research).
- 02Store engine intact: 5,476 stores (+146 net in Q1), guidance of 800 net adds in FY27, mature (12m+) stores at 10.4% store-level EBITDA and 12% YoY growth; FY26 mature-store ROCE cited at 80% by the company.
- 03Asset-light pivot: franchise stores now 12% of network and 5.4% of pharmacy revenue (+164% YoY), capex on food park/wellness facility paused, so FCF should improve as expansion shifts to franchisees.
- 04Private-label margin lever: management admits pushing private label was 'overdone'; recovering share by 0.3-0.4pp per quarter from 20% of revenue would rebuild gross margin after the 163bp YoY (~200bp QoQ) Q1FY27 drop.
- 05Valuation reset: stock at a 52-week low, ~30x FY28E consensus EPS vs Nomura TP Rs 1,190 (+80%) and consensus Rs 1,013.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 1,880 | +21.8% | +0.9% |
| Operating Profit | 133 | +1.5% | −21.3% |
| Net Profit | 33 | −21.7% | −48.1% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Sell-side targets are third-party views, not Buoyant's; the upside is recomputed on our reference close, so it differs from the figure printed at the broker's price date.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- Q2FY27 results (Oct/Nov-2026): private-label share rebuilding by 0.3-0.4pp QoQ and operating EBITDA margin recovering from 3.5%.
- Delivery on 800 net store adds in FY27 with franchise mix rising (capital-light growth).
- Any resolution/reduction of the promoter pledge (60.7%) would remove the main governance overhang.
- Promoter pledge: 60.7% of promoter holding (40.2%) is pledged, with promoter-level debt of ~Rs 1,150 cr incl. interest disclosed on the Q1FY27 call.
- Margin squeeze from wage inflation (salaries +30% YoY) and weak private-label uptake; 27 young franchise stores already closed (avg 0.7 yrs old).
- Competition from Apollo 24/7, Tata 1mg and quick-commerce medicine delivery (Blinkit/Zepto) in metros, where online is forecast to reach 20% share by 2031.