Remedium Lifecare Ltd: It is full of uncertainty in the stock market at the moment. On one hand, corporate earnings are beginning to appear and should help the market.
On the contrary, there is constant selling in this market due to external factors. Investors are looking at penny stocks.
The share prices of the trading company for pharma intermediates Remedium Lifecare Ltd rose 5 percent on Thursday, bringing them to the price of 6.13 rupees.
The stock, priced at 7 rupees has been in an upper circuit over the last couple of days. Its upper circuit cap is 5 percent. Recently bonus shares have also been announced within it.
The share that is owned by Remedium Lifecare Ltd climbed to the upper limit with a 5 percent increase on the day.
It was trading at Rs 6.13 per share, whereas the closing price was Rs 5.84. The 52-week highest of the stock was at Rs 38.25 as well as the lowest was 4.81 rupees.
In a recent filing for an exchange, Remedium Lifecare Limited clarified that recent reports in the media saying that the company received an order worth the sum of Rs 8,500 crore in cash from Eli Lilly and Company are entirely false and bogus.
The company claimed they had not signed any contract in any way with Eli Lilly and Company nor had they received any orders.
The company was founded in 1988, Remedium Lifecare Limited is a pharma intermediary company that connects production companies in pharma to suppliers of the needed raw materials.
The company purchases and sells pharmaceutical active ingredients (APIs) as well as intermediates for API synthesizing.
Remedium collaborates with both new as well as generic drug companies.
The market capitalization for Remedium Lifecare Limited is Rs 247 crore.
In the quarter-end results, the firm reported net sales of Rs 25.08 crore, and a net loss of Rs 1.78 crore in Q2FY25 when in its half-yearly results the company had a net sale of Rs 102.78 crore and a net loss of Rs 3.42 crore in H1FY25.
In its annual report, the company reported that the total revenue grew by 698 percent to Rs 4062.80 crore in FY24 when compared to FY23.
Net profits grew by 504 percent to the figure of Rs 32.72 crore.
Additionally, the board of management has decided to offer bonus shares in the ratio of 3:1.
This means that for each current share, existing investors will be entitled to 3 fully-paid shares (Rs 1 per share) with the record date being June 6, 2024, and an expiration date of July 5, 2024.
Based on the shareholding pattern the promoters of the company have only a 1.11 percent share in the company.
The highest stake is owned by public shareholders as well and 98.89 percent stakes are owned by retailers.
The share of the company has an 11x PE and an ROE of 123 percent with an ROCE rate of 100 percent.
The stock has earned an annual multibagger performance of 400 percent over three years, and 3,000 percent in five years.
The company has posted a good profit growth of 405 percent CAGR over the past five years. The company’s returns on equity (ROE) history is excellent. The ROE for the past three years is 100 percent.
Quick Fact
| Company name | Remedium Lifecare |
|---|---|
| Founded | 1988 |
| Sector | Pharma intermediates |
| Role | API and API intermediates |
| Market cap | ₹247 crore |
| Q2FY25 net sales | ₹25.08 crore |
| Q2FY25 net loss | ₹1.78 crore |
| H1FY25 net sales | ₹102.78 crore |
| H1FY25 net loss | ₹3.42 crore |
| FY24 revenue growth | 698% |
| FY24 total revenue | ₹4062.80 crore |
| FY24 net profit growth | 504% |
| FY24 net profit | ₹32.72 crore |
| Bonus share ratio | 3:1 |
| Record date (Bonus) | June 6, 2024 |
| Expiration date (Bonus) | July 5, 2024 |
| Promoter share | 1.11% |
| Public share | 98.89% |
| PE ratio | 11x |
| ROE | 123% |
| ROCE | 100% |
| 3-year performance | 400% |
| 5-year performance | 3,000% |
| 5-year profit growth | 405% CAGR |
| Recent trading price | ₹6.13 |
| Upper circuit cap | 5% |
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