5,384 per cent returns & 3:1 bonus share: Low PE & high ROE multibagger penny stock under Rs 15 surged 5.25 per cent from its intraday low; Do you own it?
The company's shares have a PE of 17x, an ROE of 123 per cent and an ROCE of 100 per cent.
Today, shares of Remedium Lifecare Ltd gained 5.25 per cent to Rs 10.42 per share from its intraday low of Rs 10 per share with over 20 lakh shares changing hands. The stock's 52-week high is Rs 39.4 and its 52-week low is Rs 8.37.
The Board of Directors of the company has inter-alia approved raising of funds by the Company up to USD 25 million through the issue of eligible securities by way of Foreign Currency Convertible Bonds (FCCBs), private placement, rights issue, preferential issue, Follow-on public offering (FPO), Qualified Institutions Placement (QIP), Global Depository Receipts (GDR), American Depository Receipts (ADR) or through any other permissible mode or a combination thereof, as may be considered appropriate, subject to shareholders' approval as applicable and applicable regulatory/statutory approvals and requirements.
Earlier, Remedium Lifecare Ltd entered into a strategic agreement with Angel Partners, Ltd., UK, to acquire technology for manufacturing lithium carbonate in India. To support this, the company has also signed a supply agreement with Alfa Chemicals and Solvents Ltd., Turkey, for the supply of technical-grade lithium carbonate, which will begin in the January-March 2025 quarter. The annual value of these supplies for 2025 is estimated at USD 20-25 million. Technical-grade lithium carbonate is a key component in lithium-ion batteries used in electric vehicles and portable electronics. Remedium plans to utilize the acquired technology from Angel Partners, Ltd. in partnership with contract manufacturers to produce 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.
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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 420 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.
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 17x, an ROE of 123 per cent and an ROCE of 100 per cent. The stock gave multibagger returns of 750 per cent in 3 years and a whopping 5,384 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.
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