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Check Before You Invest : Medplus Health Services Ltd

BSE: 543427 NSE: MEDPLUS ISIN: INE804L01022
  |   Sector:  Retail   |   Industry:  Retailing

Snapshot

Q.1 Which industry/sub-sector does Medplus Health Services Ltd belong to?
Medplus Health Services Ltd belongs to the Retail sector, operating specifically within the Retailing segment.
Q.2 Is Medplus Health Services Ltd a good quality company?
Medplus Health Services Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Medplus Health Services Ltd undervalued or overvalued?
Medplus Health Services Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 175.88 -
Price to Book 8.13 7.61
Price to Sales 12.9 20.64
EV to EBITDA 91.1 197.85
Q.4 Is Medplus Health Services Ltd a good buy now?
Medplus Health Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Medplus Health Services Ltd?
Medplus Health Services Ltd revenue growth is 52.7% for FY-2025, which is below its 5-year CAGR of 63.46%, indicating slower growth.

Q.2 Gross Profit margin of Medplus Health Services Ltd?
Medplus Health Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is above its 5-year median of 6.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Medplus Health Services Ltd?
Medplus Health Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.94% for FY-2025, which is above its 5-year median of 2.92% indicating increasing margins.

Q.4 Net Profit Margin of Medplus Health Services Ltd?
Medplus Health Services Ltd Net Profit Margin is 5.66% for FY-2025, is above its 5-year median of 2.59%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.1 6.6
Operating Profit Margin (%) 10.94 2.92
Net Profit Margin (%) 5.66 2.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Medplus Health Services Ltd?
Medplus Health Services Ltd Return on Asset is 2.97%, which is above its 5-year historical median of 0.64%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Medplus Health Services Ltd?
Medplus Health Services Ltd Return on capital employed is 4.93% for FY-2025, which is above its 5-year historical median of 1.25%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Medplus Health Services Ltd?
Medplus Health Services Ltd Return on equity is 3.4% for FY-2025, which is above its 5-year historical median of 0.71%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Medplus Health Services Ltd?
Medplus Health Services Ltd Cash conversion cycle is 35 days, below its 5-year historical median of 38 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.57 0.19
ROE (%) 3.4 0.71
ROCE (%) 4.93 1.25
Cash Conversion Cycle 35 days 38 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Medplus Health Services Ltd?
Medplus Health Services Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Medplus Health Services Ltd?
Medplus Health Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Medplus Health Services Ltd?

Q.1 Promoter shareholding and pledge status of Medplus Health Services Ltd?
Promoters hold 40.22% of the Medplus Health Services Ltd, with 60.74% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Medplus Health Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Medplus Health Services Ltd vs industry peers?
Medplus Health Services Ltd revenue CAGR is 63.46%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 52.7 0
Gross Profit Growth (%) 151.6 19.8
Operating Profit Growth (%) 143.8 16.2
Net Profit Growth (%) 344.4 18.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.57 1.11
ROE (%) 3.4 3.58
ROCE (%) 4.93 11.9
Cash Conversion Cycle (days) 34.6 38

Valuation & price assessment

Q.1 Stock return of Medplus Health Services Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 5.88% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 5.9% 9.9%
Q.2 Valuation ratios of Medplus Health Services Ltd vs historical?
The current P/E ratio of 175.88 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 175.88 - 37.15
Price to Book 8.13 7.61 2.76
Price to Sales 12.9 20.64 1.31
EV to EBITDA 91.1 197.85 14.00

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