Multibagger penny stock under Rs 25 with 400 per cent returns; Board allots 99,99,238 bonus shares in the ratio of 1:1 for first time ever!

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 13.65 per cent and a whopping 400 per cent in 3 years.

Veerhealth Care Ltd informed that the meeting of the Board of Directors of the company held today i.e., September 25, 2023, has inter-alia approved the following business:

1) Allotment of 99,99,238 bonus shares in the ratio of 1:1 i.e., 1 equity share of Rs 10 each for every 1 existing equity share of Rs 10 each to the equity shareholders entitled thereto as of September 22, 2023, being the record date fixed for the purpose.

2) Actual shares are allotted to the shareholders; fractional shares are not possible so the company will provide the cash equivalent for fractional shares. The requisite compliances with respect to the credit of bonus equity shares shall be completed in due course and on or before October 12, 2023.

Earlier, the company signed an MoU with Onest Limited for manufacturing and supplying a wide range of products falling into the ayurvedic, cosmetic and disinfectant category. Onest Limited is primarily engaged in the fast-moving consumer goods (FMCG) segment with a range of personal care, home care and food products. Additionally, the company signed a contract to supply "WHIDENT" range of toothpaste to Casablanca, Morocco (North West Africa) as a part of its expansion plan. The company is expecting additional growth in sales in the current Financial Year with the new contract of supply & additional profit.

According to the Quarterly Results, the net sales increased by 26 per cent to Rs 3.58 crore and the net profit skyrocketed 277 per cent to Rs 0.34 crore in Q1FY24 compared to Q1FY23. According to the annual results, the net sales increased by 38 per cent to Rs 13.27 crore and the net profit skyrocketed by 2,357 per cent to Rs 1.58 crore in FY23 compared to FY22.

Veer Healthcare Ltd (formerly Niyati Leasing Ltd) is engaged in the business of trading, manufacturing and marketing research based ayurvedic medicines. The company has a market cap of Rs 43.28 crore with a 3-year CAGR of 71 per cent.

On Monday, shares of the company were trading at Rs 21.64 per share, down 0.05 per cent with an intraday high of Rs 22.72 and an intraday low of Rs 20.70.

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 13.65 per cent and a whopping 400 per cent in 3 years. Investors should keep an eye on this micro-cap stock under the radar.

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

Also read: Vijay Kedia gains Rs 4,83,31,875 from this multibagger penny stock below Rs 100 in just 21 days with robust order book worth Rs 2,961 crore; Do you own it?