Penny Stock Under Rs 5 Hit Upper Circuit After Reporting A 338 Per Cent Jump In PAT & Raising Funds Upto Rs 99 Crore
The stock is up by 35.5 per cent from its 52-week low of Rs 2.11 per share.
On Friday, shares of EVOQ Remedies Ltd hit a 2 per cent upper circuit to Rs 2.86 per share from its previous closing of Rs 2.81 per share. The stock’s 52-week high is Rs 12.28 per share and its 52-week low is Rs 2.86 per share.
Incorporated in 2010, EVOQ Remedies Ltd is involved in the marketing, trading, and distribution of a diverse array of pharmaceutical formulation products, including anti-biotic, anti-malarial, anti-allergic, analgesic, dermatology, neurological, gastrointestinal, and gynecology drugs as well as steroids, calcium, multivitamins, anti-oxidants, and injections. The company also trades in active pharmaceutical ingredients, nutraceuticals, and Ayurvedic and herbal products, marketing approximately 120 of these products under its brand name through outsourced manufacturing.
According to Quarterly Results, the net sales increased by 7,740 per cent to Rs 11.76 crore and net profit increased by 338 per cent to Rs 1.71 crore in H2FY25 compared to H2FY24. In FY25, the company reported net sales of Rs 11.76 crore and net profit of Rs 0.09 crore.
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EVOQ Remedies is undertaking a strategic initiative involving the issuance of equity shares through a preferential issue, not for cash consideration, but as a swap to acquire up to 51 per cent of the paid-up equity shares of Poshan Nutriwell Pvt Ltd(PNPL). Simultaneously, the company aims to raise funds up to Rs 99.00 crore through the preferential allotment of Convertible Warrants to entities falling under the "Non-Promoter Category," under the relevant chapter governing such issuances. This two-pronged approach suggests a significant move by EVOQ Remedies to expand its business through acquisition while also securing additional capital through warrant issuance to non-promoter stakeholders.
The company has a market cap of Rs 7.12 crore. The stock has a PE of 79x whereas the industry PE is 28x and it is trading at 0.16 times its book value. According to the shareholding pattern, the promoters own 11.21 per cent stake and the rest 88.79 per cent is owned by the public as of September 2024. The stock is up by 35.5 per cent from its 52-week low of Rs 2.11 per share.
Disclaimer: The article is for informational purposes only and not investment advice.