3:1 bonus share & 5,500 per cent returns: Low PE & high ROE multibagger penny stock under Rs 15 in green as company likely to acquire AirOWater Global Trading LLC, UAE
The stock gave multibagger returns of 825 per cent in 3 years and a whopping 5,500 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd gained 3.56 per cent to Rs 10.77 per share from its previous closing of Rs 10.40 per share. The stock's 52-week high is Rs 42.44 and its 52-week low is Rs 8.37.
The Board of Directors of the company has scheduled a meeting on Wednesday, September 04, 2024, inter alia:
1) To consider the acquisition of AirOWater Global Trading LLC, UAE
The Board will review the proposal to acquire a substantial stake in AirOWater Global Trading LLC, a pioneering entity in the production of the purest form of drinking water via Atmospheric Water Generators (AWGs). This technology, recognised as one of the most sustainable solutions to the pressing issue of global water scarcity, has successfully catered to diverse sectors including government institutions, corporates, hospitality chains, supermarkets, hospital chains, educational institutions and community centres.
AirOWater is now poised to enter niche segments such as the production of Water for Injections (WFIs) and water for dialysers used in kidney dialysis, leveraging the superior quality of its AWG-produced water. This water not only meets the stringent quality controls required for such critical applications but also mitigates contamination risks associated with traditional surface and groundwater sources.
2) To consider issuing Foreign Currency Convertible Bonds (FCCBs).
3) Any other business with the permission of the Chair.
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About Remedium Lifecare Ltd
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
Earlier, Remedium Lifecare Ltd entered into a strategic agreement with Angel Partners, Ltd., UK, to acquire technology for manufacturing lithium carbonate in India. To support this, the company has also signed a supply agreement with Alfa Chemicals and Solvents Ltd., Turkey, for the supply of technical-grade lithium carbonate, which will begin in the January-March 2025 quarter. The annual value of these supplies for 2025 is estimated at USD 20-25 million. Technical-grade lithium carbonate is a key component in lithium-ion batteries used in electric vehicles and portable electronics. Remedium plans to utilize the acquired technology from Angel Partners, Ltd. in partnership with contract manufacturers to produce technical-grade lithium carbonate 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 has a market cap of Rs 430 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 825 per cent in 3 years and a whopping 5,500 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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