3:1 bonus shares next month on July 06, 2024: High ROE & high ROCE multibagger pharma products stock at Rs 81 surges 3.55 per cent today; do you own it?

The stock gave multibagger returns of 1,500 per cent in 2 years, 2,100 per cent in 3 years and a whopping 11,500 per cent in 5 years.

Today, shares of Remedium Lifecare Ltd gained 3.55 per cent to an intraday high of Rs 81 from its previous closing of Rs 77.30 per share. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 71.22.

The company's board has 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 (1 rupee each) on the record date set for July 6th, 2024. To accommodate this increase in issued shares, the board also recommends raising the authorized share capital of the company from Rs 30 crore to Rs 42 crore.

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.

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Remedium Lifecare Ltd has a market cap of Rs 795 crore with a 3-year stock price CAGR of 182 per cent. The company reported a total income of Rs 1,411.40 crore in Q4FY24 compared to a total income of Rs 75.58 crore in Q4FY23, an increase of 1,768 per cent. The company reported a net loss of Rs 53.72 crore in Q4FY24 compared to a net loss of Rs 4.78 crore in Q4FY23. 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.

Earlier, the company's shares underwent several changes: a stock split on September 1, 2023, reducing the face value from Rs 10 to Rs 5, another stock split on February 23, 2024, bringing the face value down to Rs 1 and a bonus share issuance on July 28, 2023, in a 9:5 ratio.

According to the shareholding pattern, the promoters of the company own only a 1.11 per cent stake in the company. In FY24, FIIs took a fresh entry and bought a 0.04 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.85 per cent stake. The company's shares have an ROE of 123 per cent and an ROCE of 98 per cent. The stock gave multibagger returns of 1,500 per cent in 2 years, 2,100 per cent in 3 years and a whopping 11,500 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.