3:1 Bonus Share & 2,650 Per Cent Returns: Low PE & High ROE Multibagger Penny Stock Under Rs 10 Hit Upper Circuit on December 16
The stock gave multibagger returns of 350 per cent in 3 years and a whopping 2,650 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 5.53 per share from its previous closing of Rs 5.27 per share. The stock's 52-week high is Rs 38.25 and its 52-week low is Rs 5.27 per cent.
Remedium Lifecare Ltd, founded in 1988, is a pharmaceutical company that is a middleman for other drug manufacturers. They buy and sell active pharmaceutical ingredients (APIs), which are the core chemicals used in medications, and intermediate chemicals needed to produce those APIs. Remedium deals with both innovative and generic drug companies, supplying them with a variety of products including cholesterol reducers, antidepressants, asthma medications, and allergy medicine ingredients. They source and sell these materials from around the world
Remedium Lifecare Ltd has a market cap of Rs 222 crore. According to Quarterly Results, the company reported net sales of Rs 25.08 crore and a net profit of Rs 1.78 crore in Q2FY25 while in its half-yearly results, the company reported net sales of Rs 102.78 crore and a net profit of Rs 3.42 crore in H1FY25. In its annual results, the company reported total income increased by 698 per cent to Rs 4,062.80 crore and net profit increased by 504 per cent to Rs 32.72 crore in FY24 compared to FY23.
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Remedium Lifecare Limited is strategically expanding its global and domestic operations. The company has established a WOS in Singapore to acquire a USD 200 million overseas project, partnering with Wave Capital Limited as the exclusive lead manager. Simultaneously, the company is focusing on domestic growth by acquiring lithium carbonate manufacturing technology and securing a USD 20-25 million annual supply agreement with Alfa Chemicals and Solvents Ltd. This strategic approach positions the company to capitalize on the growing demand for lithium-ion batteries and establish a strong domestic production base for technical-grade lithium carbonate in India.
Furthermore, the company's board proposed a bonus share issue in a ratio of 3:1, meaning for every 1 existing share you hold, you will receive 3 additional fully paid shares (Re 1 each) on the record date set was July 6, 2024, and ex-date was July 05, 2024.
According to the shareholding pattern, the company's promoters own only a 1.11 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.89 per cent stake. The company's shares have a PE of 11x, an ROE of 123 per cent and an ROCE of 100 per cent. The stock gave multibagger returns of 350 per cent in 3 years and a whopping 2,650 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.