Up 127% in 2024, why this ASX healthcare stock is surging again this month

How has this company pulled off a 127% gain in 2024?

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It's been a decent start to both the month of July and the 2025 financial year for ASX shares so far. Since the end of FY24, the All Ordinaries Index (ASX: XAO) has risen by a tentative 0.25%. But let's talk about one ASX healthcare stock that has started FY25 off with a bit more of a whimper.

That ASX healthcare stock is none other than Medadvisor Ltd (ASX: MDR). Sure, Medadvisor shares didn't have a spectacular start to the trading week on Monday, finishing the day flat at 50 cents a share.

But when you consider that those same shares started the 2024 calendar year at just 22 cents apiece, it's hard to feel sorry for owners of this ASX healthcare stock.

Yes, Medadvisor shares are up a whopping 127.27% over 2024 to date. This company is also up 108.33% over the past 12 months, and has gained 11.11% over the past month alone.

Check that all out for yourself below:

So how has this ASX healthcare stock pulled off such significant gains, especially over the past month alone?

How has this ASX healthcare stock risen 127% in 2024?

Well, excitement over Medadvisor shares arguably started building after the ASX healthcare stock released an impressive quarterly update back in April. As we briefly covered at the time, this saw Medadvisor post a 42.4% rise in operating revenues for the quarter ending 31 March 2024 to $24.2 million. That was up from $17 million over the same quarter of 2023.

Medadvisor's gross profits for the quarter increased by an even more impressive 48.5% to $15.3 million.

The positive sentiment following this quarterly update seemed to intensify over the following month. In May, Medadvisor followed up this quarterly update with some guidance for the full 2024 financial year. The company revealed that it is expecting to bring in $120-$123 million in revenues over FY24, which would be a huge improvement over the $98 million it saw over FY23.

The ASX healthcare stock is also anticipating to book its first-ever net profit after tax in FY24. It has told investors to expect a net profit of between $500,000 and $800,000 for the year, which again is a massive improvement over FY23's net loss of $11.3 million.

So now it's probably becoming clear why Medadvisor has become such a sought-after stock on the ASX in recent months.

EBOS buys up Medadvisor shares

But it's not just ordinary investors that seem keen on this ASX healthcare stock. An announcement earlier this month confirmed that another healthcare stock in EBOS Group Ltd (ASX: EBO) has been buying up shares in Medadvisor. The ASX filing revealed that EBOS has recently acquired just over 27.5 million shares of Medavisor, increasing its stake in the company to 9.8%.

Here's how EBOS explained its move:

EBOS initially acquired a 14.1% interest in MedAdvisor in October 2017, which has been diluted by subsequent share issuances.

EBOS regards its shareholding in MedAdvisor as an investment and does not intend to make a change of control proposal in respect of MedAdvisor.

So it seems that Medadvisor's recent financial statements are largely behind this ASX healthcare stock's remarkable ASX run in recent months. It probably doesn't hurt Medadvisor shares' fortunes that EBOS is buying up additional stock either. Let's see what FY25 has in store for this ASX high flyer.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended MedAdvisor. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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