MedPlus Health Services IPO: How good is it?

In our story, MedPlus Health Services IPO: Information analysis, we shed light on the critical details of the IPO, along with important information about the company. Here we will answer some questions about the pharmacy retailer and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. The company reported a profit before tax of Rs 141 crore in the last twelve months ending September 30, 2021. 2) Will the company be able to scale up its business? Yes. Healthcare has been one of the key focus areas since the onset of the pandemic. The Indian pharmacy retail market is expected to grow at a CAGR of approximately 11 per cent in the next five years. Moreover, penetration of organised retail, which includes Brick and Mortar chains and E-commerce, is expected to increase from 10 per cent in FY20 to 20 per cent in FY25, implying a CAGR of 25 per cent. 3) Does the company have recognizable brands truly valued by its customers? Yes. The company is the second-largest pharmacy retailer in India in terms of revenues and number of stores in FY21. 4) Does the company have high repeat customer usage? Yes. The company tends to open stores in densely populated areas of the target city to ensure a catchment area serving at least 10,000 to 15,000, thus leading to repeat customer purchases. Also, the company provides discounts and offers through its loyalty program for customer retention. 5) Does the company have a credible moat? No. Though the company is the second-largest