3:1 Bonus Share & 3,500 Per Cent Returns: Heavy Buying In This Multibagger Penny Stock Under Rs 10; Hit Upper Circuit on October 22

The stock gave multibagger returns of 505 per cent in 3 years and a whopping 3,500 per cent in 5 years.

Today, shares of Remedium Lifecare Ltd hit a 5 per cent upper circuit to Rs 6.95 per share from its previous closing of Rs 6.65 with over 17 lakh shares changing hands and saw a spurt in volume by more than 1.67 times. The stock's 52-week high is Rs 38.25 and its 52-week low is Rs 6.33 per cent.

The Company has established a new Wholly Owned Subsidiary (WOS) in Singapore named REMLIFE GLOBAL PTE LTD. The Accounting and Corporate Regulatory Authority has issued a Certificate of Incorporation with Corporate Entity Number 202439223M. To facilitate the acquisition of an overseas project valued at approximately USD 200 million, Remedium Lifecare Limited has entered into an agreement with Wave Capital Limited. Wave Capital Limited will act as the exclusive Lead Manager for this acquisition, focusing on key business sectors. The agreement outlines the appointment of Wave Capital Limited as the Lead Arranger, targeting overseas businesses with a net worth or enterprise value of USD 100 million. The agreement has a duration of one year.

Earlier, Board of Directors of the company inter-alia approved raising of funds by the Company up to USD 25 million through the issue of eligible securities by way of Foreign Currency Convertible Bonds (FCCBs), private placement, rights issue, preferential issue, Follow-on public offering (FPO), Qualified Institutions Placement (QIP), Global Depository Receipts (GDR), American Depository Receipts (ADR) or through any other permissible mode or a combination thereof, as may be considered appropriate, subject to shareholders' approval as applicable and applicable regulatory/statutory approvals and requirements.

Additionally, the company has partnered with Angel Partners, Ltd. to acquire lithium carbonate manufacturing technology and has signed a supply agreement with Alfa Chemicals and Solvents Ltd. for technical-grade lithium carbonate, valued at USD 20-25 million annually in 2025. This strategic move aims to tap into the growing demand for lithium-ion batteries in electric vehicles and portable electronics by leveraging the acquired technology and partnering with contract manufacturers to produce technical-grade lithium carbonate domestically in India.

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.

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

Remedium Lifecare Ltd has a market cap of over Rs 280 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 505 per cent in 3 years and a whopping 3,500 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. 

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