3,000 Per Cent Returns: Low PE & High ROE Multibagger Penny Stock Under Rs 10 Hit Back-to-Back Upper Circuits; Do You Own It?
The stock gave multibagger returns of 400 per cent in 3 years and a whopping 3,000 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 6.13 per share from its previous closing of Rs 5.84 per share. The stock's 52-week high is Rs 38.25 and its 52-week low is Rs 4.81 per cent. The shares of the company saw a spurt in volume by more than 2 times on BSE.
In a recent exchange filing, Remedium Lifecare Limited clarified that recent media reports claiming the company has received an order worth Rs 8,500 crore from Eli Lilly and Company are entirely speculative and unfounded. The company said that they have not entered into any such agreement or received any orders from Eli Lilly and Company.
Remedium Lifecare Ltd., founded in 1988, is a pharmaceutical intermediary connecting drug manufacturers with essential raw materials. They specialize in procuring and distributing active pharmaceutical ingredients (APIs) and intermediates for API synthesis. Remedium serves both innovative and generic drug companies, supplying ingredients for cholesterol, depression, asthma, and allergy treatments. Their global sourcing network enables them to acquire and supply these materials internationally.
Remedium Lifecare Ltd has a market cap of Rs 247 crore. According to Quarterly Results, the company reported net sales of Rs 25.08 crore and a net profit of Rs 1.78 crore in Q2FY25 while in its half-yearly results, the company reported net sales of Rs 102.78 crore and a net profit of Rs 3.42 crore in H1FY25. 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.
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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 (Re 1 each) on the record date set was July 6, 2024, and ex-date was July 05, 2024.
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 11x, an ROE of 123 per cent and an ROCE of 100 per cent. The stock gave multibagger returns of 400 per cent in 3 years and a whopping 3,000 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.