High ROE multibagger pharma stock: The board approved a bonus issue of 3:1 and declared dividend of Rs 4 per share, proposing to increase share capital to 1.25 crore!
The stock gave multibagger returns of over 300 per cent in a year.
Remus Pharmaceuticals Ltd jumped more than 9 per cent today due to the outcome of recently held a board meeting where they made some important financial decisions for the upcoming fiscal year 2023-24.
The company has declared a second interim dividend of Rs 4 per equity share, with each share having a face value of Rs 10. The record date for this dividend has been set as May 02, 2024. Additionally, the Board of Directors has approved the issuance of bonus shares in the ratio of 3:1, meaning shareholders will receive three new fully paid-up equity shares for each existing share they hold. The record date for the bonus shares will be announced later.
Furthermore, the Board has proposed to increase the Authorized Share Capital of the company from Rs 2 crore, divided into 20,000 equity shares, to Rs 12.5 crore, divided into 1,25,00,000 equity shares, each priced at Rs 10. An Extraordinary General Meeting (EGM) has been scheduled for May 28, 2024, at 11:30 AM to discuss and approve this capital increase.
Incorporated in 2015, Remus Pharmaceuticals Limited is engaged in the marketing and distributing of finished formulations of pharmaceutical drugs.
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In the financial half-year ending September 2023, the company’s revenue grew from Rs 25 crore in March 2023 to Rs 29 crore in September 2023, soaring by 16 per cent. Net profit doubled from Rs 4 crore to Rs 8 crore by a 100 per cent surge. Additionally, the Earnings Per Share (EPS) saw a healthy rise, moving up from Rs 40.83 to Rs 53.02, which jumped by 29.86 per cent.
The company has a market cap of Rs 1,018 crore and shares of the company trading at Rs 6,912. The stock gave multibagger returns of over 300 per cent in a year. Promoter holding has increased by 1.24 per cent over the last quarter. Company has a good return on equity (ROE) track record where 3 Years ROE stands at 63.6 per cent.
Investors should keep an eye on this Small-Cap pharma stock.
Disclaimer: The article is for informational purposes only and not investment advice.