Multibagger pharma distributor stock at Rs 106.5 with 23,500 per cent returns; Board likely to announce bonus shares!
The stock gave multibagger returns of 2,000 per cent in 2 years, 5,400 per cent in 3 years, and a whopping 23,500 per cent since the stock was listed on BSE.
Remedium Lifecare Ltd informed that the meeting of the Board of Directors of the company is scheduled to be held on Friday, May 10, 2024, inter alia to:
- Consider and approve the audited financial results for the quarter and financial year ended March 31, 2024.
- Consider recommendation and approval of the issue of bonus shares to the existing equity shareholders of the company.
- Consider any other matter with the approval of the board.
Remedium Lifecare Ltd, founded in 1988, is a pharmaceutical company that acts as 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.
Today, the stock market was trading in green with Sensex up 0.57 per cent and Nifty-50 up 0.55 per cent. Along with the market in green, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 106.50 per share from its previous closing of Rs 101.45. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 58.81.
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Remedium Lifecare Ltd has a market cap of over Rs 1,000 crore with a 3-year stock price CAGR of 272 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.
The company is taking a major step forward by acquiring a large manufacturing facility near Hyderabad (1,30,680 sq. ft.) to transition from just distribution to also manufacturing pharmaceutical intermediates. This Rs 38 crore acquisition, expected to close by June 30, 2024, will allow them to build a solvent recovery plant, reduce reliance on external suppliers, boost profits through in-house production, and offer a reliable domestic source of intermediates to existing customers – all following their recent success securing a significant international order (Rs 169 crore) from Pharmyka General Trading LLC.
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 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 2,000 per cent in 2 years, 5,400 per cent in 3 years, and a whopping 23,500 per cent since the stock was listed on BSE.
Disclaimer: The article is for informational purposes only and not investment advice.
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