3:1 Bonus Share & 3,185 Per Cent Returns: Low PE & High ROE Multibagger Penny Stock Under Rs 10 Hit Upper Circuit on November 04
The stock gave multibagger returns of 443 per cent in 3 years and a whopping 3,185 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 6.57 per share from its previous closing of Rs 6.26 with over 6 lakh shares changing hands. The stock's 52-week high is Rs 38.25 and its 52-week low is Rs 5.29 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 over Rs 280 crore with a 3-year stock price CAGR of 100 per cent. According to Quarterly Results, the company reported net sales of Rs 77.70 crore and net profit of Rs 1.64 crore in Q1FY25. 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.
Remedium Lifecare Limited has taken significant strides in its global expansion. The company has established a new Wholly Owned Subsidiary (WOS) in Singapore, named REMLIFE GLOBAL PTE LTD, to facilitate acquiring an overseas project valued at approximately USD 200 million. To streamline this process, the company has partnered with Wave Capital Limited, appointing them as the exclusive Lead Manager for the acquisition. This strategic alliance aims to secure overseas businesses with a substantial net worth or enterprise value of USD 100 million.
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In addition to its international endeavors, Remedium Lifecare Limited is actively pursuing domestic growth opportunities. The company has secured a partnership with Angel Partners, Ltd. to acquire cutting-edge lithium carbonate manufacturing technology. Simultaneously, Alfa Chemicals and Solvents Ltd. has initiated a supply agreement to procure technical-grade lithium carbonate, valued at USD 20-25 million annually in 2025. This strategic move positions the company to capitalize on the burgeoning demand for lithium-ion batteries in the electric vehicle and portable electronics sectors. By leveraging the acquired technology and collaborating with contract manufacturers, Remedium Lifecare Limited aims to establish a robust domestic production capability 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 443 per cent in 3 years and a whopping 3,185 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.