Penny stock under Rs 25: This micro-cap company introduces a new division in the hospital care segment with a Rs 100 lakh investment
The stock is up by 26.2 per cent from its 52-week low of Rs 16.02 per share and gave multibagger returns of 270 per cent in 3 years.
On Thursday, shares of Veerhealth Care Ltd plunged 0.74 per cent to Rs 20.21 per share from its previous closing of Rs 20.36 per share with an intraday high of Rs 21.39 per share and an intraday low of Rs 19.12 per share. The stock’s 52-week high is Rs 30.10 per share and its 52-week low is Rs 16.02 per share.
VeerHealth Care Limited (BSE: VEERHEALTH), AYUVEER, backed by Veerhealth Care's expertise in Ayurveda, specializes in crafting Ayurvedic medicines and oral care products with natural ingredients. With a focus on quality and affordability, AYUVEER aims to offer an exceptional and safe daily care experience to its customers. Under this new division, the company has associated with a leading manufacturer and exporter of anaesthesia delivery equipment, air compressors and ambulances. This manufacturing Company mainly caters for the field of operating room, critical care, life support, imaging and mobile healthcare.
The company has successfully marketed and supplied the first lot of equipment including a ventilator, defibrillator, infusion pump, syringe pump and other accessories to a government organization. The company will excel in this new line of business soon. For this new division, the Company will be incurring an outlay of Rs 100 lakh funded from internal resources. The company is expecting its current revenues will increase by around Rs 50 lakhs per month which is expected to increase by Rs 9-10 crore p.a. with estimated EBITDA margins of 10- 15 per cent.
Recently upon submission of the required documentation, USFDA has issued FDA Form 4003a Records Receipt Confirmation and has confirmed that there are no further requests at this time and have closed their RRA assessment. The successful completion of the RRA assessment by the USFDA would enable the company to open up its business in the USA market.
Also, recently company had a factory visit from a leading corporate group from Russia which is one of the largest suppliers of its exclusive brands and in-house brands in the following categories for more than 30 years: skin care, make-up cosmetics, household cleaning, baby diapers and pet foods. They are presented in all the biggest hyper supermarkets like Gold Apple, L’Etoile, Rivegauche and retail chains such as Metro Cash & Carry, Tander, Aushan, etc. This group is entering the Oral Care market in Russia with advanced formulations and has approved the plant for manufacturing and export of Oral Care products to the Russian market.
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About the Company
VeerHealth Care Limited manufactures and supplies Ayurvedic, oral care, and personal care products. Their Vapi, Gujarat facility meets international standards. Guided by experts, they offer a wide range of products like shampoos, conditioners, and Ayurvedic toothpaste. They hold certifications like ayurvedic and cosmetic manufacturing licenses, GMP, ISO 9001:2015, and US FDA Labeler Code. The company has a market cap of Rs 40.42 crore with a 3-year CAGR of 75 per cent.
In FY24, the company reported a total revenue of Rs 14.61 crore and a profit before tax of Rs 1.28 crore. The company is expecting to reach Revenue of Rs 100 crore with a PAT of 10 per cent in the next 2 to 3 years.
The stock is up by 26.2 per cent from its 52-week low of Rs 16.02 per share and gave multibagger returns of 270 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.