Medplus Health (MEDPLUS)

FairStock Score: 32/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 15.67% and net profit growth of 25.98% show a healthy expanding business.
• Piotroski F-Score of 7/9 indicates solid financial health across profitability, leverage, and operating efficiency.
• Debt/Equity of 0.65 and ROCE of 10.28% suggest the balance sheet is not stretched and capital is generating a reasonable return.
• Promoter holding of 40.29% aligns promoters with minority shareholders.
• Latest quarterly revenue of ₹1,806 crore demonstrates meaningful scale in pharmacy retail.

Concerns

• Valuation is demanding: P/E of 49.16, P/B of 9.16, and PEG of 2.36; growth is priced for perfection.
• Return on equity is only 4.94%, and the company pays no dividend, so investors depend entirely on price appreciation.
• Latest quarterly net profit margin is thin at about 3.2% (₹58 crore profit on ₹1,806 crore sales).
• FairStock Score of 29/100 flags significant risk, and the current price of ₹907 is in the upper part of the 52-week range.

AI Analysis

Let me define a great investment: a business with durable advantages, sensible earnings power, and a price that leaves room for error. Medplus fails that final test, and I have doubts about the first. Pharmacy retail is a hard, low-margin business. Last quarter, Medplus earned ₹58 crore on ₹1,806 crore of sales — barely a 3.2% net margin. The company is growing: sales are up 15.67% and profits up 25.98% over the year. The Piotroski score of 7/9 suggests the operational engine is not broken. Debt-to-equity of 0.65 is manageable, and ROCE of 10.28% is respectable. Promoter holding of 40.29% means skin in the game. But return on equity is just 4.94%; that is miserable for a company being priced like a winner. At ₹907, the stock trades at 49.16 times earnings and 9.16 times book value, and the PEG ratio of 2.36 tells me the market has already paid for years of success. There is no dividend to cushion the wait. The FairStock Score of 29/100 labels this risky, and I agree. Graham would insist on margin of safety; at today's price, I see none. A good growth company can still be a bad investment if you pay too much. I would need a much lower price to turn this into a decision. Until ROE improves meaningfully or the stock falls to a valuation that compensates for the thin margins, Medplus is more risk than reward. I can wait.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer