With a market capitalization of ₹ 1,418 crores, Remedium Lifecare is a small-cap company engaged in the business of trading in Advanced Pharmaceutical Intermediates and other pharma products.
In the past six months, the company’s share price rallied from ₹ 140.00 apiece to ₹ 4,136.65 (its record high), giving multibagger returns of 2854%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares six months ago, the value of their holding would have been ₹ 29.54 lakhs today!
According to an exchange filing, Remedium Lifecare has announced a bonus issue in the ratio of 9:5. This means that eligible shareholders will receive 9 bonus equity shares for every 5 equity shares that they hold in the company. The company has set July 29, 2023, as the record date for the issue.
For the entire financial year (FY23), the company’s net profit escalated 403% to ₹ 5.43 crores, against ₹ 1.08 crores in the previous financial year (FY22). However, its revenue increased marginally to ₹ 509.84 crores in FY 23, against ₹ 504.79 crores in FY22.
The company’s net loss widened to ₹ -4.78 crores in the January to March quarter of 2023 (Q4FY23), as compared to ₹ 1.16 crores reported in the corresponding quarter last year (Q4FY22). However, its revenue increased by 87.60% to ₹ 75.58 crores from ₹ 40.29 crores during the same period.
Remedium Lifecare has a very high return on equity of 70.92%. Its shares were trading at a price-to-earnings (P/E) ratio of 274, which is significantly higher than the industry P/E of 39.5, indicating that the stock might be overvalued as compared to its peers. Retail investors hold a 98.89% stake in the company, whereas its promoters hold merely a 1.11% stake.
Written By Simran Bafna
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