Hyderabad based MedPlus shares dip over 3 per cent after Karnataka store suspension
MedPlus Health Services shares fell over 3.6 pre cent after its subsidiary, Optival Health Solutions, received a 15-day drug license suspension at a Karnataka store, potentially affecting revenue. Despite setbacks, CareEdge reaffirmed its financial ratings for the company’s bank facilities
Mumbai: Shares of MedPlus Health Services slipped over 3.6 per cent on the BSE, touching an intra-day low of Rs 755.3 per share on Monday. However, later in the day, the stock recovered and was trading 2.42 per cent lower at Rs 765 per share. The company’s market capitalisation stood at Rs 9,166.43 crore. The fall in MedPlus shares came after its subsidiary, Optival Health Solutions Private Limited, received a suspension order for a drug license at one of its stores in Karnataka.
According to the stock exchange filing, the suspension will remain in effect for 15 days for the store located at MG Road, Chikkamagalore, leading to a potential revenue loss of Rs 10.15 lakh.
“We would like to inform you that Optival Health Solutions Private Limited, a subsidiary of the company, has received one suspension order for a Drug License of a store situated in Karnataka,” the firm said in its filing.
This is not the first such instance for the company. Earlier, on October 9, a store under Optival Health Solutions at Alaknanda Colony, Vizianagaram, Andhra Pradesh, was also suspended for seven days.
In addition, some stores in Chhattisgarh and Telangana have also faced temporary suspension of drug licenses. Despite these setbacks, rating agency CareEdge Ratings recently reaffirmed its confidence in the company’s financials.
On October 10, CareEdge maintained its ‘CARE A’ rating for Optival Health Solutions’ long-term bank facilities worth Rs 236 crore (up from Rs 200 crore) with a ‘Stable’ outlook. For short-term bank facilities worth Rs 14 crore (up from Rs 12 crore), the agency reaffirmed the ‘CARE A1’ rating.
MedPlus Health Services operates one of India’s largest pharmacy retail networks, with over 4,230 stores across 600 cities in 10 states, including Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, Maharashtra, Kerala, Chhattisgarh, and Madhya Pradesh.
The company’s business includes retail and wholesale operations, manufacturing of private-label products, imports, distribution, and diagnostic services.
