3:1 Bonus Share & Ex-date is July 05, 2024: Multibagger penny stock under Rs 75 saw heavy volume breakout; rockets over 17 per cent in just 1 day

The stock gave multibagger returns of 1,765 per cent in 3 years and a whopping 9,150 per cent in 5 years.

Today, shares of Remedium Lifecare Ltd gained 17.13 per cent to an intraday high of Rs 70.43 from its previous closing of Rs 60.13. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 58.50. The shares of the company saw a heavy volume breakout by more than 10 times on BSE.

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 (1 rupee each) on the record date set for July 6, 2024 and ex-date is July 05, 2024. To accommodate this increase in issued shares, the board also recommends raising the authorized share capital of the company from Rs 30 crore to Rs 42 crore. Increase in Authorised share capital of the company and consequent alteration in the capital clause of the Memorandum of Association of the company Rs 30,00,00,000 divided into 30,00,00,000 equity shares of Re 1 each to Rs 42,00,00,000 divided into 42,00,00,000 equity shares of Re 1 each.

Additionally, the company has been awarded a significant contract by Aster Biotech Limited, a pharmaceutical distribution company based in the United Kingdom. This multi-year deal signifies a major opportunity for Remedium to supply various pharmaceutical products to the UK market. The contract spans three years, from July 2024 to June 2027. Notably, the first year alone holds substantial value, with supplies of Active Pharmaceutical Ingredients (APIs), Intermediates, and Specialty Chemicals estimated at Rs 175 crore. This international contract positions Remedium well for continued growth and strengthens its presence in the global pharmaceutical supply chain.

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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

Furthermore, the company's shares underwent several changes: a stock split on September 1, 2023, reducing the face value from Rs 10 to Rs 5, another stock split on February 23, 2024, bringing the face value down to Rs 1 and a bonus share issuance on July 28, 2023, in a 9:5 ratio.

Remedium Lifecare Ltd has a market cap of over Rs 690 crore with a 3-year stock price CAGR of 150 per cent. The company reported a total income of Rs 1,411.40 crore in Q4FY24 compared to a total income of Rs 75.58 crore in Q4FY23, an increase of 1,768 per cent. The company reported a net loss of Rs 53.72 crore in Q4FY24 compared to a net loss of Rs 4.78 crore in Q4FY23. 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. In FY24, FIIs took a fresh entry and bought a 0.04 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.85 per cent stake. The company's shares have an ROE of 123 per cent and an ROCE of 100 per cent. The stock gave multibagger returns of 1,765 per cent in 3 years and a whopping 9,150 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.