9:5 bonus shares and stock split from Rs 10 to Rs 5 to Rs 1: Multibagger small-cap stock with 98.85 per cent public ownership hit 5 per cent upper circuit on March 26

The stock gave multibagger returns of 425 per cent in just 1 year, 7,790 per cent in 3 years, and a whopping 20,500 per cent in 5 years.

Today, the stock market was trading in red with Sensex down 0.28 per cent and Nifty-50 down 0.15 per cent. Though the market was in red, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 112.85 per share from its previous closing of Rs 107.50. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 20.60. In the recent trading session, the stock has been hitting back-to-back upper circuits.

Remedium Lifecare Ltd is in the business of trading in advanced pharmaceutical intermediates and other pharma products. The company has a market cap of over Rs 1,100 crore with a 3-year stock price CAGR of 300 per cent.

The company experienced significant growth across all financial periods. In Q3FY24, net sales surged by 939 per cent and net profit skyrocketed by 4,425 per cent compared to Q3FY23. Similarly, in 9MFY24, net sales increased by 506 per cent and net profit grew by 747 per cent year-over-year. While the growth slowed down in FY23, net sales still managed to increase by 1 per cent and net profit rose by a remarkable 400 per cent compared to FY22.

Remedium Lifecare Ltd., a pharmaceutical ingredients distributor, is set to acquire a manufacturing facility in Hyderabad, India (130,680 sq. ft, located at Phase 2, Survey No. 10, Gaddapotharam Industrial Area, Jinnaram Mandal, Medak, Sangareddy District, Hyderabad-502319, Telangana, India) marking a shift from trading to manufacturing pharmaceutical intermediates. The Rs 38 crore acquisition (paid in stages) with expected completion by June 30, 2024, will allow them to establish a solvent recovery plant, reduce reliance on external suppliers, improve profit margins, and provide a domestic source of intermediates for their customers.

Earlier, the company bagged an international order worth Rs 169 crore from Pharmyka General Trading LLC; a Pharmaceutical Company Situated in UAE. The order includes the supply of pharmaceutical chemicals from April 2024 to March 2025 and the payment will be done within 120 days from the billing date.  

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 1.11 per cent stake in the company while FIIs own 0.04 per cent stake and the maximum stake is owned by the public shareholders i.e. 98.85 per cent stake. The shares of the company have an ROE of 71 per cent and a ROCE of 103 per cent. The stock gave multibagger returns of 425 per cent in just 1 year, 7,790 per cent in 3 years, and a whopping 20,500 per cent in 5 years.

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