9:5 bonus shares & stock split from Rs 10 to Rs 5 to Rs 1: Multibagger pharma distributor stock at Rs 116.55 was locked in the upper circuit on April 18

The stock gave multibagger returns of 185 per cent in just 1 year, 7,000 per cent in 3 years, and a whopping 21,400 per cent in 5 years.

Today, the stock market was trading in green with Sensex up 0.57 per cent and Nifty-50 up 0.65 per cent. Along with the market in green, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 116.55 per share from its previous closing of Rs 111. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 20.60. The stock has been hitting back-to-back upper circuits in the recent trading session.

Remedium Lifecare Ltd is in the business of trading in advanced pharmaceutical intermediates and other pharma products. The company has a market cap of Rs 1,174.82 crore with a 3-year stock price CAGR of 306 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 is poised to significantly expand its operations by acquiring a 1,30,680 sq. ft. manufacturing facility near Hyderabad, India. This move marks a strategic shift for the company, as they transition from solely distributing to also manufacturing pharmaceutical intermediates. The acquisition, valued at Rs 38 crore and expected to close by June 30th, 2024, will enable them to establish a solvent recovery plant and gain several advantages. These include reduced dependence on external suppliers, improved profit margins due to in-house production, and the ability to offer their existing customers a reliable domestic source of pharmaceutical intermediates. This strategic move comes on the heels of Remedium Lifecare securing a substantial international order worth Rs 169 crore from Pharmyka General Trading LLC, a UAE-based pharmaceutical company.

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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. In comparison, 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 company's shares have an ROE of 71 per cent and an ROCE of 103 per cent. The stock gave multibagger returns of 185 per cent in just 1 year, 7,000 per cent in 3 years, and a whopping 21,400 per cent in 5 years.

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