Nomura has maintained its buy rating on MedPlus Health Services with a target price of ₹1,040 per share after the company reported Q2FY26 results broadly in line with expectations, supported by improving operating performance.
The brokerage said revenues were in line with estimates, while operating EBITDA showed a marginal beat during the quarter. Nomura highlighted that traction in private label products continues to improve, which should have a favourable impact on gross margins in the coming quarters.
MedPlus’ store expansion plans remain on track, with management maintaining its aggressive rollout strategy across key markets. However, Nomura noted that overhead expenses have increased at a faster clip, reflecting the company’s continued investments in network expansion and logistics infrastructure.
The brokerage believes MedPlus’ focus on private label growth, scale efficiencies, and digital integration will support steady margin expansion and revenue visibility in the medium term.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
