Stock Gearing Up for ‘Range Breakout’, Jumps 4%!
has again taken a hit in today’s session after a one-day relief on Wednesday. As the index is still on the weaker side, it’s better to look for stock-specific action if traders are looking for some long trades.
Shares of MedPlus Health Services Ltd (NS:) are making a buzz in the early trade which should be kept on the watchlist. The company is in the business of pharmacy via both physical stores and an online portal – medplusmart.com, having a market capitalization of INR 8,027 crores.
It currently trades at a P/E ratio of 83.79 and is one of the very few profitable online businesses that recently got listed on the NSE. In Q3 FY23, the company clocked a revenue of INR 1,201.68 crores which was 27.7% up YoY, while net income took a 21.9% hit to INR 13.42 crores as EBITDA margins contracted. A company that is less than INR 10,000 cores in market cap is catching the attention of biggies. FIIs hold a 3.95% stake in the company while DIIs have a decent 16.83% interest.
Image Description: Daily chart of MedPlus Health Services with volume bars at the bottom
Image Source: Investing.com
Just like other recent IPOs, the share price of MedPlus Health Services failed to impress the street after its debut in December 2021. Although there was a rally seen soon after the listing, it was short-lived and the stock quickly followed the trajectory toward the south. But the downtrend seems to have been over for a quarter now as now further lows were being made after November 2022.
Amid a steep downtrend, the stock turned sideways which is the first indication of demand for the shares starting to match supply which eventually results in a neutral trend. Since mid-December 2022, the stock has been moving in a range, with the resistance being INR 700 and support at INR 600. This 100-point range is keeping the stock to catch a direction owing to the selling from higher levels and demand from the lower levels.
But today, shares of MedPlus Health Services jumped 4% to INR 702, by 10:34 AM IST and crossed this resistance which is now depicting a further upside potential to INR 760. However, it has to be noted that the supply from these levels is quite high therefore traders should wait for the stock to close the session above the resistance to make a move.
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