Shares of Medplus Health Services rose more than 12% in early trade on May 26, as investors piled into the stock after the healthcare services company reported a string of good numbers for Q3FY22-23.

Medplus Health reported that net profit more than tripled to Rs 26.5 crore in the January-March period, up from Rs 11.7 crore a year earlier.

Revenue also rose 29.7% YoY to Rs 1,253 crore from Rs 966 crore on the back of rapid store expansion. The strong top-line also contributed to the growth in net profit.

The company said 65% of its stores opened in the first half of FY23 broke even within six months of operation, improving operational performance. EBITDA margin improved to 6.5% in the fourth quarter from 5.4% in the same period of the previous fiscal year.

Medplus Health Services was up 11.5% at Rs 768.90 at 9:58 am on the National Stock Exchange. Trading volume also jumped as 7 lakh shares changed hands, well above the one-month daily average of 54,000 shares.

Brokerage firm Investec praised the company’s strong quarterly numbers as they topped consensus estimates. The brokerage was also impressed by the improvement in gross and EBITDA margins in the quarter, despite adding 284 stores.

Investec has reserved a “buy” call on the stock with a target price of Rs 860. The price target reflects an upside potential of nearly 25% from the May 25 closing price.