3:1 Bonus Share & FIIs took a fresh entry in this low PE, high ROE & high ROCE multibagger pharma stock under Rs 80; PAT zooms over 500 per cent

The stock gave multibagger returns of 1,460 per cent in 2 years, 2,300 per cent in 3 years and a whopping 14,200 per cent in 5 years.

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.

Remedium Lifecare Ltd has a market cap of over Rs 700 crore with a 3-year stock price CAGR of 187 per cent. The company reported a total income of Rs 1,411.40 crore in Q4FY24 compared to a total income of Rs 75.58 crore in Q4FY23, an increase of 1,768 per cent. The company reported a net loss of Rs 53.72 crore in Q4FY24 compared to a net loss of Rs 4.78 crore in Q4FY23. 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.

The Board has considered approved and recommended a bonus issue of shares in the ratio 3:1 i.e., 3 equity shares of Re 1 each fully paid up for every 1 equity share of Re 1 each fully paid up held as on the Record date decided for this purpose. The company fixed the record date as Saturday, July 06, 2024.

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Earlier, 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 FY24, FIIs took a fresh entry and bought a 0.04 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.85 per cent stake. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 58.81. The shares of the company have a PE of 15x, an ROE of 71 per cent and an ROCE of 103 per cent. The stock gave multibagger returns of 1,460 per cent in 2 years, 2,300 per cent in 3 years and a whopping 14,200 per cent in 5 years.

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