3:1 bonus share & 5,000 per cent returns: Low PE & high ROE multibagger penny stock under Rs 10 hit the upper circuit for the second consecutive trading session!
The stock gave multibagger returns of 750 per cent in 3 years and a whopping 5,000 per cent in 5 years.
Remedium Lifecare Ltd.'s stock price surged 5 per cent on August 21, 2024, reaching Rs 9.71 per share. This marks the second consecutive day the stock has hit its upper circuit limit. The stock's 52-week high is Rs 42.44, and its 52-week low is Rs 8.37. The surge in price was accompanied by a significant increase in trading volume, with over 78 lakh shares exchanged on BSE on August 20, 2024, representing a 2.33-fold jump from the previous day's volume.
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
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.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
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 (1 rupee each) on the record date set was July 6, 2024, and ex-date was July 05, 2024.
Remedium Lifecare Ltd has a market cap of Rs 390 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 5,000 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.
Also Read: Hyundai Motor Company’s portfolio EV-stock ends 5.7% lower after doubling from IPO price: Company first to certify 4 two-wheeler products under Auto PLI Scheme